The hidden costs of blockchain transactions, the MEV problem, are becoming more serious

There is an “invisible fee” that users pay every time they make a transaction on the blockchain network. It is called the maximum extractable value(MEV, Maximum Extractable Value). Recently, discussions about the MEV issue have surged within the cryptocurrency community because it directly impacts the assets of ordinary users.

How does MEV occur?

Validators or miners have the authority to determine the order of transactions within a block. Some exploit this authority to prioritize their own transactions or delay certain transactions to generate additional revenue. In this process, ordinary users suffer unexpected losses, and a vicious cycle of increased transaction costs and longer processing times repeats.

Negative impacts leading to degraded user experience

The spread of MEV undermines the trustworthiness of blockchain networks. The opaque transaction processing mechanisms directly affect the integrity of decentralized finance(DeFi) platforms and hinder the development of an accessible cryptocurrency ecosystem. Users lose confidence that their transactions are processed fairly, which can ultimately lead to exits from the cryptocurrency market.

Movements toward solutions

The community agrees that the current situation can no longer be ignored. Strengthening transparency and implementing technical improvements for fair transaction processing are urgent. Restoring trust among network participants requires fundamental structural changes to minimize the impact of MEV. Solving the MEV problem should be recognized as an essential task, not an option, for the sustainable growth of the blockchain ecosystem.