Validator Transaction Scheduling

Validators are responsible for selecting which transactions to include in a block and in what order. This power gives them significant control over the outcome of trades within that block.

By strategically ordering transactions, validators can capture MEV, such as by placing their own trades before or after a large user order. This scheduling process is the mechanism by which MEV is realized.

Some protocols have introduced fair-ordering services or decentralized sequencers to mitigate this influence and create a more equitable market. Understanding how validators schedule transactions is key to comprehending the hidden incentives within blockchain networks.

It is a central theme in the study of market microstructure for decentralized systems.