The Merge is Ethereum's major development since its inception in 2015. As cryptocurrency nears general use, serious concerns have arisen concerning the sustainability, security, and scalability of its primary networks. Ethereum foresaw these problems and saw Proof of Stake as the mechanism to protect its future from the start, but it has taken years to develop a design that makes Ethereum's economic model more durable, its architecture more scalable, and sustainable. One aspect that everyone is keeping an eye on The Merge is the change it brings to Mempool. Let's find out more on <a href="https://www.builder.news/" alt="Builder.news" title="Builder.news" target="_blank" rel="" class="">Builder.news</a>.<img src="https://cdn.builder.news/news/11ed30189c25af95a8e6023f659fee92.jpg" alt="the merge affect ETH mempool" title="the merge affect ETH mempool" width="600" height="400" class="lykafe0"><h2>What is Ethereum Mempool?</h2>A blockchain establishes a permanent transaction ledger. You can't undo what you've written. As a result, blockchains require a system to determine the order in which transactions are added to the block. The dynamic staging region in front of the blockchain that enables transaction sequencing, transaction fee priority, and overall block creation is known as the mempool.Ethereum mempool is the entry point to Ethereum's blockchain. When a transaction is received by an Ethereum node, it is not immediately included in a block. The transaction is placed in a buffer zone or a waiting area.<img src="https://cdn.builder.news/news/11ed30189c25b746a8e6023f659fee92.jpg" alt="ETH" title="ETH" width="600" height="401" class="lykafe1">The transaction is verified at several levels, including if the output is greater than the input, whether the signature is legitimate, and so on, before being added to a block. If any of the above validations or checks fail, the transaction is not added to a block. A mempool plays a role when a transaction is going through these checks. It is just stored in this waiting room or in a mempool. The transaction is withdrawn from the mempool and included in a block as soon as it is confirmed.Mempool is not a global reference shared by all nodes. There isn't a "single" mempool. This means that each node defines its own mempool rules. In fact, a node might be the first to receive a transaction, yet it is feasible that the transaction was not propagated to the rest of the network.<h2>Ethereum Mempool use cases</h2>A mempool is the essential component of how a blockchain transports transactions from a user's wallet to block confirmation. A blockchain provides a permanent collection of transactions that, once published, cannot be undone. As a result, a system is required to determine the order of transactions to be put to a block. Here are some use cases of Ethereum mempool:Transaction ordering: The mempool enables critical operations such as transaction ordering, block building, and transaction fee priority.<h2>Ethereum Mempool mechanism</h2><ol><li>When a user initiates a transaction, it is routed to the node or nodes to which it is linked.</li><li>Then a node validates it by doing various tests on it (such as determining whether the output is greater than the input, whether the signature is genuine, and so on), adding it to its own mempool.</li><li>The node forwards it to the next node, which adds it to its own mempool and publishes it to its peers.</li><li>Each node that has received the transaction will go through the same process, replicating the transaction across the network.</li><li>Some of them are mining nodes that add it to a block and then start competing to solve the block's hash in order to be the first to add it to the blockchain.</li><li>When a miner succeeds, the block of transactions is included in the chain, and the new block is disseminated across the network.</li><li>All nodes obtain the newly added block and have access to the transactions it contains. If they have any of these generated transactions in their mempool, the nodes will eliminate them from it.</li></ol><h2>Sandwich attack: The current problem with Ethereum mempool</h2><h3>How Ethereum Mempool affects transaction fees</h3>Ethereum transactions involve the mining process. Because the miners must expend additional work for this process, Ethereum transactions charge an additional fee known as the transaction fee. Paying more fees may help you get the transaction approved faster. Although there is no formal transaction cost, miners favor transactions containing a fee because it raises their payout for every block.The size of a mempool is determined by the node. The default file size is 300 MB. When a node approaches its RAM limit, it establishes a base fee rate and notifies its peers so that they do not send transactions below this rate until the RAM is cleared.Because a node with a small or big mempool may lose transactions sooner or later, the mempool sizes vary. This produces congestion, and users can either stand in line for the congestion to clear or pay additional fees to have their transactions processed faster.Since there is no financial incentive to run a node, the hardware dedicated to it is restricted, and a node's Mempool frequently exceeds its RAM limit (it is 300MBs by default). When this occurs, the node simply shuts down and restarts with a clear Mempool.<img src="https://cdn.builder.news/news/11ed30189c25bbb6a8e6023f659fee92.jpg" alt="ETH gas fee" title="ETH gas fee" width="600" height="322" class="lykafe2">Source: Finematics&gt;&gt;&gt; Related:&nbsp;<ul><li><a href="https://www.builder.news/crypto-insights/misconceptions-about-the-merge" alt="The Merge misconceptions" title="Unveil misconceptions about the Merge" target="_blank" rel="" class="">Unveil misconceptions about the Merge</a></li><li><a href="https://www.builder.news/crypto-insights/how-ethereum-proof-of-stake-affect-miners-swTcG" alt="How will Ethereum's Proof of Stake affect miners?" title="How will Ethereum's Proof of Stake affect miners?" target="_blank" rel="" class="">How will Ethereum's Proof of Stake affect miners?</a></li></ul><h3>Sandwich attack</h3>It turns out that the mempool isn't quite a "secure area." Because there are sophisticated bots lurking there, eager to capitalize on arbitrage chances and leave you footing the tab.The "sandwich attack" is one of the most heinous strategies used by the bots. This is where a bot notices a major trade, duplicates it, and pays a tiny tip to the miner to include their transaction ahead of the target.Consider the following scenario. You have 10 ETH and want to purchase SOL. So you go to your preferred decentralized exchange (DEX) and execute the transaction. Your transaction enters the mempool and is detected by a bot. It precisely replicates your trade and pays the miner a "priority fee" to have their trade executed first. As a result, the bot purchases at a cost of 50 SOL per ETH. It's now your turn. You expected to receive 50 SOL per ETH, but the bot pre-empted the transaction, causing the price to move such that you now receive 49 SOL per ETH. As a result, you obtain 490 SOL for your 10 ETH. The price of SOL will change once your transaction is completed. One ETH will now buy you 48 SOL.<img src="https://cdn.builder.news/news/11ed30189c25bfe7a8e6023f659fee92.jpg" alt="Sandwich attack" title="Sandwich attack" width="600" height="282" class="lykafe3">Source: InternetThat implies the bot can sell SOL back and profit within minutes. This may not seem like much, but these bots are always running, and front-running transactions may become quite profitable over time.There are numerous other clever tactics used by mempool-roaming bots. These actions are referred to as maximal extractable value, and many of them are as time-consuming as the front-runner example.MEV has become a significant issue for genuine Ethereum users, with no viable fixes in sight. These algorithms are simple to code and extremely profitable. MEV-explore does have a dashboard that tracks this activity, and it shows that these vulnerabilities have netted nearly $700m since records began on January 1, 2020.It is extremely difficult to regulate this situation because it would necessitate a centralized agency, which goes against Ethereum's decentralized principle. Third parties, on the other hand, have discovered solutions to safeguard users from these tricks.<h2>Block builder: The Merge’s game changer</h2><h3>Modular approach</h3>As Ethereum transitions from <a href="https://www.builder.news/crypto-insights/pow-compared-with-pos" alt="PoW compared with PoS" title="PoW compared with PoS - What solution is optimal?" target="_blank" rel="" class="">Proof of work to Proof of stake</a>, validators will take the role of miners. But there will be a significant change. Ethereum's post-Merge Proof of stake architecture will take a modular approach rather than combining the process of creating and verifying blocks.When a system is modular, each individual component can carry out particular functions on its own. Since the 1960s, the idea has been used in computer science. When Eth1 and Eth2 were renamed, we could see that modularity was emphasized. This modular approach will eventually be carried over into transaction processing in the form of proposer-builder separation (PBS). PBS, in its most basic form, essentially divides block creation and block validation into two distinct processes. As a result, a new stakeholder group known as block builders has emerged.<img src="https://cdn.builder.news/news/11ed30189c25c440a8e6023f659fee92.jpg" alt="ETH mev-boost" title="ETH mev-boost" width="600" height="211" class="lykafe4">Source: Flashbot Github&gt;&gt;&gt; Check out:&nbsp;<a href="https://www.builder.news/crypto-insights/which-protocols-benefit-from-the-merge-9s9S0" alt="Which protocols benefit from The Merge?" title="Which protocols benefit from The Merge?" target="_blank" rel="" class="">Which protocols benefit from The Merge?</a><h3>Block builders</h3>The nature of MEV will change once The Merge is completed. The block builder is a new character in Ethereum's upcoming Proof of stake mechanism. They are in charge of ordering transactions and sending them to the block producer for ultimate approval.Miners determine how to order transactions coming out of the mempool in the Proof of work (PoW) system.Because each block is made up of transactions, and each transaction has different fees &amp; bribes paid, the value of each block changes based on the transactions included within it. As a result, block builders are driven to build the most profitable blocks because they will be prioritized and validated first by block producers.MEV centralization happens when mining and staking pools vertically merge with trading organizations to improve MEV profit, according to Flashbots, the inventors of mev-boost. According to the Flashbots website, mev-boost was developed to prevent post-Merge MEV centralization and to foster a diversified network of block builders.The Ethereum community is so confident in mev-boost that developers intend to implement the concept of PBS into Ethereum's core protocol a year or two after the Proof of stake transition. Meanwhile, if everything goes as planned, mev-boost will be available immediately following the Merge.<h2>Bottom Lines</h2><a href="https://www.builder.news/crypto-insights/the-merge-a-pivotal-event-for-ethereum" alt="The Merge: A pivotal event for Ethereum" title="The Merge: A pivotal event for Ethereum" target="_blank" rel="" class="">The Merge</a> will certainly change the Ethereum mempool significantly. This is good news for real users since they have been suffering from MEV strategies for so long. In this context, the block builder shall come in as the savior.There are currently multiple protocols vying for a piece of the new block-building business, and this might become a highly profitable sector. MEV Boost, on the other hand, is intended to make MEV extraction more accessible and egalitarian.Without getting into specifics, if a protocol can generate the most profitable blocks, then block producers will finish their blocks first. This may entice additional people to use their service, providing them with a larger private pool of transactions from which to choose and the capacity to build even better blocks. A virtuous circle is formed.<div class="pr-block-special">Disclaimer: This article is intended for and only to be used for reference purposes only. No such information provided constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific name.</div>

Check out how big an influence The Merge has on Ethereum Mempool.

How does The Merge influence Ethereum Mempool?