Felix Pinkston October 16, 2024 18:07
BNB Chain introduces proposer-builder separation to address MEV challenges and enhance the security and efficiency of blockchain transactions. Learn about MEV, its impact, and protective measures.
BNB Chain is making strides in addressing the complex issue of Maximum Extractable Value (MEV), a phenomenon prevalent in blockchain ecosystems such as BSC and Ethereum. Although MEV is beneficial in encouraging participation in the network, it poses challenges such as arbitrage and sandwich attacks.
Separation model of proposer and constructor
To alleviate these challenges, BNB Chain implements a proposer-builder separation (PBS) model. This innovative approach separates the role of block proposers, known as validators, from block builders. Builders are responsible for creating blocks and pitching them to validators, who choose the most profitable blocks to add to the blockchain. This separation is intended to enhance network security and transaction efficiency.
Enhanced transaction privacy
BNB Chain aims to protect transactions from potential MEV-related attacks by leveraging privacy-preserving remote procedure calls (RPC). When a user performs a transaction via private RPC, the transaction is sent to the builder’s private memory pool, making it invisible to an attacker in the public memory pool. As a result, the risk of sandwich attacks is significantly reduced.
Decentralized exchange (DEX) and builder providers such as PancakeSwap and 48 Club offer free MEV protection. Users can learn more about these privacy-preserving RPCs in their respective documentation.
Optimize transaction speed
The speed of ingesting transactions on the blockchain is affected by the number of validators registered with each builder and the level of usage each builder experiences. Validators are more likely to choose profitable bundles created by active builders, so a larger number of validators and higher utilization will result in faster transaction ingestion.
Users can access the latest MEV builder data through the Dune dashboard, providing insight into the most efficient builders for broadcast transactions. Additionally, we recommend building a proxy that broadcasts transactions to multiple builders to maximize transaction speed.
For advanced users, premium privacy-preserving RPC services are available. However, these services typically do not provide a direct RPC URL for wallet configuration, so users must set up their own RPC proxy.
BNB Chain’s efforts to refine MEV management reflect the company’s commitment to enhancing the security and efficiency of blockchain transactions. For more information, please visit the BNB Chain Blog.
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