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Block production on the Ethereum blockchain has adopted an auction-based mechanism known as Proposer--Builder Separation (PBS), where validators outsource block creation to builders competing in MEV--Boost auctions for Maximal Extractable…

Computer Science and Game Theory · Computer Science 2025-10-01 Fei Wu , Thomas Thiery , Stefanos Leonardos , Carmine Ventre

With Ethereum's transition from Proof-of-Work to Proof-of-Stake in September 2022 came another paradigm shift, the Proposer-Builder Separation (PBS) scheme. PBS was introduced to decouple the roles of selecting and ordering transactions in…

Distributed, Parallel, and Cluster Computing · Computer Science 2023-09-26 Lioba Heimbach , Lucianna Kiffer , Christof Ferreira Torres , Roger Wattenhofer

Maximal extractable value (MEV) in which block proposers unethically gain profits by manipulating the order in which transactions are included within a block, is a key challenge facing blockchains such as Ethereum today. Left unchecked, MEV…

Cryptography and Security · Computer Science 2024-05-16 Yifan Mao , Mengya Zhang , Shaileshh Bojja Venkatakrishnan , Zhiqiang Lin

In blockchain systems operating under the Proof-of-Stake (PoS) consensus mechanism, fairness in transaction processing is essential to preserving decentralization and maintaining user trust. However, with the emergence of Maximal…

Distributed, Parallel, and Cluster Computing · Computer Science 2026-01-21 Yitian Wang , Yebo Feng , Yingjiu Li , Jiahua Xu

Ethereum, as a representative of Web3, adopts a novel framework called Proposer Builder Separation (PBS) to prevent the centralization of block profits in the hands of institutional Ethereum stakers. Introducing builders to generate blocks…

Computational Engineering, Finance, and Science · Computer Science 2024-11-14 Shuzheng Wang , Yue Huang , Wenqin Zhang , Yuming Huang , Xuechao Wang , Jing Tang

The current Proposer-Builder Separation (PBS) equilibrium has several builders with different backgrounds winning blocks consistently. This paper considers how that equilibrium will shift when transactions are sold privately via order flow…

Theoretical Economics · Economics 2023-10-16 Tivas Gupta , Mallesh M Pai , Max Resnick

Initially introduced to Ethereum via Flashbots' MEV-boost, Proposer-Builder Separation allows proposers to auction off blockspace to a market of transaction orderers, known as builders. PBS is currently available to validators through the…

Cryptography and Security · Computer Science 2025-06-24 Maxwell Koegler

With the emergence of Miner Extractable Value (MEV), block construction markets on blockchains have evolved into a competitive arena. Following Ethereum's transition from Proof of Work (PoW) to Proof of Stake (PoS), the Proposer Builder…

Networking and Internet Architecture · Computer Science 2023-06-06 Anton Wahrstätter , Liyi Zhou , Kaihua Qin , Davor Svetinovic , Arthur Gervais

We study the impact of the order flow auction (OFA) in the context of the proposer-builder separation (PBS) mechanism in blockchains through a game-theoretic perspective. The OFA is designed to improve user welfare by redistributing maximal…

Theoretical Economics · Economics 2025-12-10 Ruofei Ma , Wenpin Tang , David Yao

The goal of this paper is to rigorously interrogate conventional wisdom about centralization in block-building (due to, e.g., MEV and private order flow) and the outsourcing of block-building by validators to specialists (i.e.,…

Computer Science and Game Theory · Computer Science 2024-01-23 Maryam Bahrani , Pranav Garimidi , Tim Roughgarden

The Ethereum block-building process has changed significantly since the emergence of Proposer-Builder Separation. Validators access blocks through a marketplace, where block builders bid for the right to construct the block and earn MEV…

Computer Science and Game Theory · Computer Science 2024-03-19 Fei Wu , Thomas Thiery , Stefanos Leonardos , Carmine Ventre

Blockchains have sparked global interest in recent years, gaining importance as they increasingly influence technology and finance. This thesis investigates the robustness of blockchain protocols, specifically focusing on Ethereum…

Cryptography and Security · Computer Science 2024-12-02 Ulysse Pavloff

Ethereum's upcoming Glamsterdam upgrade introduces EIP-7732 enshrined Proposer--Builder Separation (ePBS), which improves the block production pipeline by addressing trust and scalability challenges. Yet it also creates a new liveness risk:…

Computer Science and Game Theory · Computer Science 2026-01-09 Bruno Mazorra , Burak Öz , Christoph Schlegel , Fei Wu

We present a comprehensive analysis of the implications of artificial latency in the Proposer-Builder Separation framework on the Ethereum network. Focusing on the MEV-Boost auction system, we analyze how strategic latency manipulation…

Computer Science and Game Theory · Computer Science 2024-01-12 Umberto Natale , Michael Moser

This study investigates the rapid centralization of the Ethereum builder market under the Proposer-Builder Separation (PBS) architecture. We argue that existing research, by focusing predominantly on influential order flows, lacks a…

Cryptography and Security · Computer Science 2026-05-07 Ao Zhang , Yunwen Liu , Ren Zhang , Yingdi Shan , Yongwei Wu

Cooperation is fundamental for human prosperity. Blockchain, as a trust machine, is a cooperative institution in cyberspace that supports cooperation through distributed trust with consensus protocols. While studies in computer science…

General Economics · Economics 2023-01-23 Luyao Zhang , Xinyu Tian

Blockchains protect an ecosystem worth more than $500bn with strong security properties derived from the principle of decentralization. Is today's blockchain decentralized? In this paper, we empirically studied one of the least…

Cryptography and Security · Computer Science 2025-05-01 Sen Yang , Kartik Nayak , Fan Zhang

In a PoW-based blockchain network, mining pools (the solo miner could be regarded as a mining pool containing one miner) compete to successfully mine blocks to pursue rewards. Generally, the rewards include the fixed block subsidies and…

Computer Science and Game Theory · Computer Science 2021-10-20 Jinmian Chen , Yukun Cheng , Zhiqi Xu , Yan Cao

Blockchains rely on economic incentives to ensure secure and decentralised operation, making incentive compatibility a core design concern. However, protocols are rarely deployed in isolation. Applications interact with the underlying…

Computer Science and Game Theory · Computer Science 2026-04-08 Zeta Avarikioti , Georg Fuchsbauer , Pim Keer , Matteo Maffei , Fabian Regen

We study the amount of maximal extractable value (MEV) captured by validators, as a function of searcher competition, in blockchains with competitive block building markets such as Ethereum. We argue that the core is a suitable solution…

Computer Science and Game Theory · Computer Science 2025-10-01 Akaki Mamageishvili , Christoph Schlegel , Benny Sudakov , Danning Sui
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