MEV Auction: Auctioning transaction ordering rights as a solution to Miner Extractable Value

Making reverting transactions invalid is non-trivial. If you receive an unconfirmed transaction from a peer and validate it locally, whether it reverts or not depends on when it’s executed (i.e. its index in the totally ordered list of transactions provided by the blockchain). Therefore you can’t ban a peer that sends you a reverting transaction (unless you make the peer provide you the complete ordering of transactions it used to execute that transaction, but that’s computationally infeasible). Being unable to ban a peer that sends you an invalid transaction is a DoS vector.

Note that this does not apply in the same way for spending conditions with monotonic validity, such as the predicates used in Bitcoin Script or those that have been proposed for Fuel.

A standard transaction ordering algorithm might help with the above, but I’m not aware of even a single one that has been proposed that isn’t hopelessly broken.

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