MEV (Maximal Extractable Value)
Definition: MEV refers to the maximum profit that Validators (Proof of Stake) / Miners (Proof of Work) can make by strategically including, excluding, or reordering transactions within the blocks they produce. It originates from the ability to manipulate transaction order to capture price differences and arbitrage opportunities on the network.
Category: Blockchain Network
Example: A common form of MEV is through DEX arbitrage, where a validator might reorder transactions to first buy a token at a lower price on one exchange and sell it at a higher price on another exchange in a single block.
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