You signed in with another tab or window. Reload to refresh your session.You signed out in another tab or window. Reload to refresh your session.You switched accounts on another tab or window. Reload to refresh your session.Dismiss alert
To further classify the payment methods, we can consider the broader context of Ethereum block building, including both
8
-
traditional and MEV-Auction scenarios as it relates to payment mechanisms.
7
+
# Classification of Payment Methods in Ethereum Block Building
9
8
10
-
> This classification covers a range of payment methods from the simplest direct payments to more complex arrangements
11
-
> involving smart contracts and off-chain agreements.
9
+
To further classify the payment methods, we can consider the broader context of Ethereum block building, including both traditional and MEV-Auction scenarios as it relates to payment mechanisms.
12
10
13
-
1. Direct Payment Method
11
+
> This classification covers a range of payment methods from the simplest direct payments to more complex arrangements involving smart contracts and off-chain agreements.
14
12
15
-
-**Description**: The most straightforward method where the block proposer (validator) receives the transaction fees
16
-
directly from the transactions included in the block.
17
-
-**Use Case**: Commonly used in standard Ethereum block building.
| Direct Payment Method | Commonly used in standard Ethereum block building. | Yes | No |
17
+
| Coinbase Transfer Payment Method | Utilized in both traditional and MEV-Auction scenarios. | Yes | Yes |
18
+
| Indirect Address Payment (IAP) Method | Specific to MEV-Auction, where builders and proposers are distinct entities. | No | Yes |
19
+
| Intermediate Transfer Payment (ITP) Methods | Specific to MEV-Auction, particularly when involving smart contracts or third-party addresses. | No | Yes |
20
+
| Smart Contract-Based Payment Method | Useful in decentralized block building scenarios or when complex payment distributions are required. | Yes | Yes |
21
+
| Off-Chain Payment Method | Might be used in private agreements between parties involved in block building. | Yes | Yes |
20
22
21
-
-**Description**: In this method, the transaction fees and MEV rewards are transferred directly to the block
22
-
proposer's address via the coinbase transaction.
23
-
-**Use Case**: Utilized in both traditional and MEV-Auction scenarios.
23
+
### Direct Payment Method
24
24
25
-
3. Indirect Address Payment (IAP) Method
25
+
-**Description**: The most straightforward method where the block proposer (validator) receives the transaction fees directly from the transactions included in the block.
26
+
-**Use Case**: Commonly used in standard Ethereum block building.
26
27
27
-
-**Description**: The builder uses a different address to pay the proposer through an end-of-block transaction,
28
-
separate from the address receiving the block’s transaction fees.
29
-
-**Use Case**: Specific to MEV-Auction, where builders and proposers are distinct entities.
28
+
### Coinbase Transfer Payment Method
30
29
31
-
4. Intermediate Transfer Payment (ITP) Methods
30
+
-**Description**: In this method, the transaction fees and MEV rewards are transferred directly to the block proposer's address via the coinbase transaction.
31
+
-**Use Case**: Utilized in both traditional and MEV-Auction scenarios.
32
32
33
-
-**Description**: Involves a two-step process where the builder first transfers the payment to an intermediary
34
-
address, which then sends it to the proposer.
35
-
-**Use Case**: Also specific to MEV-Auction, particularly when involving smart contracts or third-party addresses.
33
+
### Indirect Address Payment (IAP) Method
34
+
35
+
-**Description**: The builder uses a different address to pay the proposer through an end-of-block transaction, separate from the address receiving the block’s transaction fees.
36
+
-**Use Case**: Specific to MEV-Auction, where builders and proposers are distinct entities.
37
+
38
+
### Intermediate Transfer Payment (ITP) Methods
39
+
40
+
-**Description**: Involves a two-step process where the builder first transfers the payment to an intermediary address, which then sends it to the proposer.
41
+
-**Use Case**: Also specific to MEV-Auction, particularly when involving smart contracts or third-party addresses.
42
+
43
+
### Smart Contract-Based Payment Method
36
44
37
-
5. Smart Contract-Based Payment Method
45
+
-**Description**: Payments are handled through a smart contract, which can programmatically distribute rewards based on predefined rules.
46
+
-**Use Case**: Useful in decentralized block building scenarios or when complex payment distributions are required.
38
47
39
-
-**Description**: Payments are handled through a smart contract, which can programmatically distribute rewards based
40
-
on predefined rules.
41
-
-**Use Case**: Useful in decentralized block building scenarios or when complex payment distributions are required.
48
+
### Off-Chain Payment Method
42
49
43
-
6. Off-Chain Payment Method
50
+
-**Description**: Payment occurs outside the Ethereum blockchain, possibly through other cryptocurrencies or traditional banking systems.
51
+
-**Use Case**: Might be used in private agreements between parties involved in block building.
44
52
45
-
-**Description**: Payment occurs outside the Ethereum blockchain, possibly through other cryptocurrencies or
46
-
traditional banking systems.
47
-
-**Use Case**: Might be used in private agreements between parties involved in block building.
0 commit comments