Flashbots

Flashbots was founded in 2020 by researchers including Stephane Gosselin and Phil Daian to study and address MEV. Their work fundamentally changed how Ethereum transactions are processed and MEV is distributed.

**MEV-Boost:** MEV-Boost is middleware run by Ethereum validators that connects them to a competitive market of block builders: - **Block builders** specialize in constructing maximally profitable blocks by ordering transactions to capture MEV - **Relays** receive blocks from builders and forward the most profitable to validators - **Validators** receive payment for including the builder's block without knowing its full contents (blind signing) - Validators earn a portion of MEV revenue on top of standard block rewards

**Why this helps:** - MEV is extracted efficiently without mempool spam wars (gas auction waste is eliminated) - Validators earn more rewards (stronger PoS economics) - MEV extraction is more transparent — aggregated through a structured system rather than chaotic front-running

**The Flashbots bundle:** Before MEV-Boost, Flashbots offered the "Flashbots bundle" — a private transaction channel where searchers could submit transaction bundles directly to miners/validators, bypassing the public mempool. This reduced failed front-running transactions and their gas waste.

**Criticisms:** - MEV-Boost creates centralization pressure around a few dominant block builders - Relay censorship (OFAC compliance) filtered certain transactions, raising censorship concerns - PBS doesn't eliminate MEV, just restructures who captures it

**SUAVE:** Flashbots is developing SUAVE (Single Unifying Auction for Value Expression), a decentralized block builder network to address centralization concerns.