A growing number of sophisticated Ethereum users are choosing to transact privately on the blockchain – relying on so-called dark pools to avoid trading bots set up to front-run transactions, but potentially obscuring the openness and transparency that are supposed to be hallmarks of decentralized public networks.
That’s according to new research compiled by Blocknative, a company that specializes in preventing or minimizing the impact of MEV, which stands for “maximal extractable value” – the profits that can be siphoned off by fast-moving software bots that can quickly enter into trades to skim margin off of transactions that are sitting in the network’s public queue, waiting to be processed.
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