Cardano is praised for its superiority in combating MEV.

A developer with the nickname “dori” recently praised the innovation of Maximal Extractable Value (MEV) on the Cardano blockchain. In a post on X, this developer emphasized that the eUTXO model and the Ouroboros PoS consensus mechanism of Cardano nearly eliminate MEV at the protocol level, which he considers a superior solution compared to Ethereum's design.

The MEV issue and how Cardano addresses it

MEV refers to the additional profits generated when a transaction is reordered, inserted, or censored during the confirmation process on the blockchain. This is often carried out by miners, validators, or “MEV bots.”

Dori mentioned that on Ethereum, MEV bots can exploit the detection of transactions in the mempool to quickly place their own transactions before the original transaction is confirmed, thereby profiting from predictable price volatility. Regular users thus lose a portion of their value each time they make a transaction due to manipulation of transaction order by bots or block producers.

Meanwhile, Cardano employs a local transaction validation mechanism, without a global mempool for bots to scan and reorder transactions, thus preventing bots from exploiting MEV. Dori asserts that the technical design of Cardano ensures both decentralization and greater fairness. He stated:

“When you truly understand how the other layers work and compare them with Cardano, you will find it efficient, secure, and extremely well-designed.”

Lessons for Ethereum and other blockchains

On blockchains like Ethereum, efforts to mitigate MEV are being implemented, but this remains a structurally challenging issue to resolve. “dori” emphasizes that this very structure complicates the remediation of MEV. Some users also appreciate Cardano for its ability to avoid MEV, providing a smoother user experience compared to many other blockchains.

Notably, Neo X in the recent mainnet upgrade has also improved the ecosystem and implemented a protection mechanism against MEV, aiming for a truly decentralized and censorship-resistant platform.

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