A developer, “dori,” has lauded the Maximal Extractable Value (MEV) innovation on the Cardano (ADA) blockchain. In a post on X, the developer praised Cardano’s eUTXO model and Ouroboros PoS for making protocol-level MEV almost impossible. This, the developer insists, is a better alternative to Ethereum’s design flaw.
Cardano’s proof-against-MEV issues
For context, MEV refers to the extra profit that the system makes when there is a reorder, insert or censor transaction during confirmation on the blockchain. This is done by miners or validators and sometimes by “MEV bots” scanning the network.
“dori” said this has created a situation where MEV bots make a profit by spotting a trade in the memepool and quickly place their own transaction before it is finalized. This allows them to make gains from the predictable price movement.
According to the developer, ordinary users are losing a small amount of value each time they transact because bots or block producers manipulate the transaction.
He insists that Cardano’s consensus mechanism is preferable to Ethereum’s as there is no global mempool for bots to scan. Rather, it is locally validated, so bots cannot reorder transactions for profit.
“dori” believes Cardano’s technical design is more aligned with decentralization and fairness. “Once you really understand how other layers work and then look at Cardano, you’ll see just how efficient, secure, and well-designed it truly is,” he stated.
What can Ethereum and competing chains do?
In contrast, across Ethereum and other layers, efforts are on to mitigate MEV, but it remains a structural issue. “dori” insists that this structural issue makes it even more difficult to resolve.
Some users have also commended Cardano for sidestepping MEV, as it makes it more user-friendly than other chains.
Neo X blockchain, in its recent mainnet upgrade, has stepped up its ecosystem and made it MEV-protected. The chain stated the goal is to make the platform censorship-resistant and truly decentralized.
Source: https://u.today/ethereum-versus-cardano-big-truth-on-mev-loophole-in-spotlight