What is Flashbots?
Flashbots is a research and development organization building infrastructure to mitigate the negative effects of MEV — including Flashbots Protect (private transactions) and MEV-Boost (proposer-builder separation).
WHY IT MATTERS
Flashbots addresses MEV's externalities. Before Flashbots, MEV extraction caused: failed transactions (gas wars), network congestion (priority gas auctions), and user exploitation (sandwich attacks). Flashbots created infrastructure to make MEV extraction more orderly.
Key products: Flashbots Protect (private mempool preventing sandwich attacks), MEV-Boost (connecting validators to block builders), and SUAVE (future decentralized block building). These tools have become standard Ethereum infrastructure.
The majority of Ethereum blocks are now built through MEV-Boost, demonstrating Flashbots' impact on the MEV supply chain.