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Protecting Users: The MEV Blocker RPC

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On April 5th, it was announced that over 30 Ethereum projects, including Safe, BitKeep, DODO, Oasis, Balancer, and 1inch, have collaborated to launch MEV Blocker RPC, which aims to

Protecting Users: The MEV Blocker RPC

On April 5th, it was announced that over 30 Ethereum projects, including Safe, BitKeep, DODO, Oasis, Balancer, and 1inch, have collaborated to launch MEV Blocker RPC, which aims to protect users from various types of MEV attacks.

Over 30 projects such as Safe and BitKeep have collaborated to launch MEV Blocker RPC

Cryptocurrency has given birth to various innovative blockchain projects such as Ethereum, which house hundreds and thousands of decentralized applications or dApps. However, this boom in blockchain technology has also given rise to malicious attacks on these dApps with the use of a technique called “Miner Extractable Value” or MEV. On April 5th, over 30 Ethereum projects, including Safe, BitKeep, DODO, Oasis, Balancer, and 1inch, joined hands to launch the MEV Blocker RPC. In this article, we will discuss what MEV is, its impact on the blockchain, and how MEV Blocker RPC aims to protect users from its attacks.

What is MEV?

MEV, also known as Miner Extractable Value, is a technique introduced in Ethereum to incentivize miners to include or exclude specific transactions in their proposed blocks. In simpler words, it is a way for miners to earn extra revenue by deciding which transactions to include or exclude in a block. MEV takes advantage of the fact that miners can control the ordering of transactions in a block, which can, in turn, influence the outcome of smart contracts.

The Impact of MEV on Blockchain

MEV can be beneficial for the miners, but it can have negative implications on the blockchain. MEV can alter the market equilibrium of transactions and can create a barrier for other legitimate users. MEV can result in transaction reordering and front-running, or the placement of an order ahead of another user’s. These actions can lead to unethical behavior and can threaten the integrity of the blockchain.

The MEV Blocker RPC – Protecting Users from MEV Attacks

MEV Blocker RPC, a joint collaboration between over 30 Ethereum projects, is an innovation that aims to mitigate the MEV threat. To understand how it works, let us first discuss the two types of attacks MEV Blocker RPC targets: sandwich attacks and flash loans.

Sandwich Attacks

A sandwich attack happens when a miner places two transactions on the blockchain that are beneficial to them and harmful to the user. The first transaction (A) is the user’s original transaction, followed by a transaction (B) placed by the malicious attacker that undermines the user’s original transaction, and finally, a third transaction (C) placed by the miner, which benefits them financially. Sandwich attacks occur because miners have the power to reorder transactions. MEV Blocker RPC provides protection against sandwich attacks by allowing users to mark their transactions as protected. If a transaction is marked protected, and a sandwich attack is apparent, the protected transaction will get reverted, resulting in a failed attack.

Flash Loans

The second type of attack is a flash loan. Flash loans occur when an attacker takes a loan for a brief period to carry out an attack and returns the loan before the transaction finalizes. With the introduction of the MEV Blocker RPC, users can mark their transactions as protected. If the MEV Blocker RPC detects a flash loan attack, it can revert the transaction, resulting in a failed attack.

Conclusion

MEV Blocker RPC is a joint collaboration between over 30 Ethereum projects aimed at mitigating the MEV threat. MEV Blocker RPC achieves this through marking protected transactions and detecting sandwich attacks and flash loans to protect its users from potential losses.

FAQs

1. What is the significance of MEV Blocker RPC?
MEV Blocker RPC is significant because it provides efficient protection to its users by detecting sandwich attacks and flash loans.
2. How does MEV Blocker RPC detect sandwich attacks?
By allowing users to mark their transactions as protected, MEV Blocker RPC detects sandwich attacks, resulting in a failed attack.
3. How does MEV Blocker RPC prevent flash loans?
Users can mark their transactions as protected. The MEV Blocker RPC detects flash loan attacks and reverts these transactions, resulting in a failed attack.

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