Understanding MEV: How Transaction Reordering Impacts You

Validators and block searchers hold significant power in determining the order in which transactions get processed on the blockchain. But what does this actually mean for everyday users?

When validators and searchers reorder transactions—prioritizing certain ones over others—they're essentially extracting value that might otherwise go to you. This phenomenon, known as MEV (Maximal Extractable Value), happens silently behind most transactions.

Here's the reality: transaction ordering isn't random. Searchers scan the mempool, identify profitable arbitrage opportunities or liquidations, and convince validators to place their transactions first. The user in the middle? They often eat slippage, worse execution prices, or worse—complete transaction failure.

The stakes are massive. On major blockchains, billions flow through MEV extraction annually. Whether you're swapping tokens on a DEX, liquidating positions, or doing anything on-chain, transaction ordering affects your outcome.

So next time a trade feels off, or your slippage seems unusually high, MEV might be the culprit. Understanding this mechanism is the first step toward protecting your interests.