Hey guys, I’m here to talk about an upcoming project that was recently put on my radar and frankly has me quite excited.
Financial Disclaimer: I did not receive any sort of payment for making this review. This is purely done out of my own interest to share my thoughts and educate people about Archer. Currently ARCH is not trading yet but a public sale is planned very soon and I am interested in participating. However, my investments are my own and in no way should they be seen as financial advice.
Without further ado, let’s dive into it.
Archer caught my interest because they are bringing a new concept to the table which could have some serious impact on our space. They are bringing in MEV.
What the hell is MEV?
MEV = Miner-extractable value.
Let’s go a bit deeper into what exactly this means.
Basically by offering MEV, Archer creates an extra revenue source for miners and this is how:
Mining pools are the ones who decide which transactions get verified first. Now what if someone was able to incentivize a miner pool to process their TX first? If someone were to be able to get a miner to give priority to their TX that would mean this person gets first spot in on anything he wants (arbitrage opps., gas war presales….you name it).
The way it used to be was just that the transactions with the highest fees would get mined first as those gave the biggest rewards to miners. Theoretically however, it’s perfectly possible to see a TX with for example 5 gwei get confirmed faster than one with 100 gwei. It’s all up to the pool that decides which transaction to mine first.
But why would a pool ever mine a transaction with the lowest fee first?
Enter the explosion DeFi which brought along an incredible increase in DEX trading volume and with it, many on-chain arbitrage opportunities.
You now have traders with bots who are constantly scanning for these opportunities. However, they are all racing each other and normally the guy with the highest fee wins. Right? But what if you could buy your first spot in the block? What if you negotiate with a mining pool and get them to “whitelist” your address to make sure your transactions get priority over others no matter the fee? Now that would represent some VERY interesting opportunities.
You have miners looking for valuable transactions while you have traders looking for the fastest transactions.
Here’s where Archer comes in by connecting these markets. What Archer does is crowd-source and execute the best transactions for miners.
Archer enables miners to capture value on-chain by running algorithms that identify opportunities. Transactions will get prioritized by participating miners and in the end revenue will be split between suppliers and miners.
It’s going to be very interesting to see what long term effect this will have on the future of Ethereum.
Till here ends my review, hope you guys enjoyed reading through it and understand a little more about Archer and what are doing. Thanks for reading!
Find out more in their telegram at https://t.me/archerdao
