Phil Daian is a researcher and software engineer and is leading the charge into mapping MEV with the Flashbots Project. Georgios Konstantopoulos and Charlie Noyes are both partners at Paradigm.


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Bankless Podcast #66: MEV Panel
Guests: Charlie Noyes, Phil Daian, & Georgios Konstantopolous

In this State of the Nation, we bring on bigbrain experts behind projects like Paradigm and Flashbots to explain the complex but critical topic of MEV commonly known as Miner Extractable Value, but as discussed in this episode, Maximum Extractable Value is a more appropriate descriptor. MEV is arguably the single most important unsolved problem in the crypto space.

In the context of incentives and network security, MEV generally refers to the ability of miners & validators to take advantage of their position as securers of the network. Blocks are verified by single entities, and these block producers have tremendous power when they are the ones adding a particular block to the blockchain. We refer to this instance as ‘GodMode,’ in which a node has the power to assemble & order transactions at will. The threat here is the potential gaps between what is best for the network and what is best for the node.

As an internal and unbounded threat to blockchains, solving the problems that MEV presents is critical to maintaining proper consensus and ensuring decentralization and permissionless access. We take a deep dive into potential solutions, and the impact of EIP1559 and ProofofStake on MEV. Dive in to learn why despite the challenges ahead, Charlie says:

“In the absence of certainty, I’m willing to take the optimistic perspective.”


Topics Covered:

0:00 Intro
8:00 Phil, Georgios, and Charlie
11:45 The Biggest Unsolved Problem
18:11 MEV Maximum Extractable Value
22:25 Gamestop, Robinhood, and MEV
27:57 GodMode Incentives
37:39 Quantifying MEV
44:55 Qualifying MEV
54:10 Flashbots
59:07 Rational Economic Leviathan
1:08:12 Time Bandits & Network Congestion
1:11:00 EIP1559 and MEV
1:17:53 Proof of Stake and MEV
1:25:55 MEV and Economic Security
1:30:20 Slaying Moloch on Layer 2
1:40:00 Philosophical Questions
1:45:20 Cautiously Optimistic
1:49:40 Closing & Disclaimers


Resources:

Phil on Twitter
https://twitter.com/phildaian?s=20
Georgios on Twitter
https://twitter.com/gakonst?s=20
Charlie on Twitter
https://twitter.com/_charlienoyes?s=20
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Not financial or tax advice. This channel is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. This video is not tax advice. Talk to your accountant. Do your own research.

Disclosure. From timetotime I may add links in this newsletter to products I use. I may receive commission if you make a purchase through one of these links. Additionally, the Bankless writers hold crypto assets. See our investment disclosures here:
https://newsletter.banklesshq.com/p/b...