Dive into some of our latest research on base fee volatility
It's getting harder and harder to estimate fees on Ethereum due to a rising volume of private transactions. Private transactions are transactions submitted to Ethereum that bypass the public mempool. Normally, user transactions are collected by Ethereum nodes and stored temporarily in a dedicated storage area called the "mempool" before being included in a block. All pending transactions in the mempool can be viewed publicly and at times, these transactions can be taken advantage of by specialized actors known as "searchers". To avoid front-running, back-running, and sandwiching attacks on transactions by searchers, an increasing number of Ethereum users are resorting to submitting their order flow privately to block builders. This is causing inaccuracies in fee calculations as the demand for block space is no longer accurately captured by the volume of transactions in the public mempool. I spoke with Matt Cutler from Blocknative about these findings on today's episode of Infinite Jungle. Matt explains how this phenomena came about, how his team discovered it, and its potentially negative ramifications on the censorship-resistance of Ethereum. YouTube: https://lnkd.in/d7JY6wqs Apple Podcasts: https://lnkd.in/dncsh4KU Spotify: https://lnkd.in/dujeEdux