Summary
TLDR: The Protocol newsletter covers two topics this week. Firstly, Ethereum users are using “private mempools” to prevent front-running by MEV bots. Secondly, there is a rise in the use of “councils” to oversee adolescent networks.
Key Points
1. Ethereum users are turning to “private mempools” to avoid front-running MEV bots: The article highlights how Ethereum users are increasingly relying on “private mempools” to protect their transactions from being front-run by bots that exploit the MEV (Miner Extractable Value) opportunities. Private mempools allow users to keep their transactions hidden until they are ready to be included in a block, minimizing the chances of being front-run and ensuring fair execution.
2. The rise of “councils” overseeing adolescent networks: The article also explores the growing trend of establishing “councils” to oversee and govern adolescent networks. These councils consist of trusted individuals who collectively make decisions regarding the network’s development, upgrades, and overall governance. This approach aims to strike a balance between decentralization and effective decision-making by involving a select group of individuals with expertise and vested interests.
3. The significance of avoiding front-running and enhancing network governance: The two topics discussed in the article highlight the ongoing challenges faced by the Ethereum network and the broader cryptocurrency ecosystem. Finding solutions to prevent front-running by MEV bots is crucial for ensuring fair and equitable transaction execution. Similarly, the evolution of governance models, such as the use of councils, reflects the industry’s efforts to improve decision-making processes and address scalability and coordination challenges as networks grow and mature.