Today we will talk about what is MEV, which stands for Maximal Extractable Value, also known as maximizing profits on the Ethereum blockchain.

With the popularity of cryptocurrencies, Ethereum has become one of the most popular blockchains. MEV refers to the maximum value obtained through transactions on the Ethereum network. This value comes from operations such as flash loans, arbitrage, and price manipulation.

In Ethereum transactions, miners can obtain MEV profits by reordering and packaging transactions. For example, they can buy relevant tokens before the transaction and sell them after the transaction, profiting from the price difference.

Additionally, flash loans are another form of MEV. Flash loans involve borrowing and trading to complete transactions within seconds, resulting in significant profits in the market. This operation needs to be completed quickly and before the transaction is confirmed. Miners can gain MEV profits by rapidly packaging flash loan transactions.

Furthermore, there is a method called “manipulation” where traders buy a token during a transaction and then sell it in the same transaction. This can make other traders believe that the token’s price is dropping, leading them to sell in large quantities to manipulate the price. Miners can earn MEV profits by collecting fees from these transactions.

In conclusion, MEV is a new way of earning on the Ethereum network, and it requires miners to perform specific operations to obtain profits. I hope this video helps you better understand the concept of MEV.