Blocknative has uncovered evidence that the MakerDAO liquidations on March 12 and 13 were an engineered event. This evidence is derived from the mempool, the pre-chain area miners use to create blocks. The mempool is an often overlooked – and commonly under-appreciated – aspect of the Ethereum ecosystem.
Earlier this year, we asked When One Billion ETH Transactions? And as part of our focus on transaction growth, we began digging into the global stablecoin market — which is now sustaining >$1 billion per day in transaction value.
To better understand the growth of the global stablecoin market, we leveraged data from Coin Metrics to create a new report:
We want to wish the entire community well during the COVID-19 pandemic. While things are turbulent right now, we wanted to share a new post that dives deep into the mempool so that you can dig into an important part of the Web3 ecosystem.
Blockchains are transaction machines. But on-chain data represents value-at-rest — confirmed transactions. While pre-chain, or mempool, data explores value-in motion — transactions in flight.
To date, the industry has largely focused on value-at-rest. This is an important piece of the Web3 puzzle. But for any transaction to be included in a block, it must move through the mempool. And unlike the blockchain — which acts as a definitive record — the mempool is chaotic, fragmented, and often unpredictable.
In the course of building infrastructure to monitor the mempool, we've learned a lot about how it works. And at ETHDenver 2020 Matt Cutler, Blocknative's CEO and co-founder, shared some important lessons in his talk Mastering the Mempool:
Web3 is taking root — transitioning from proof-of-concepts to enterprise-grade solutions. As specialists in the global mempool and the associated value in motion, the team at Blocknative looked back at 2019 and wondered, "How many public blockchain transactions have ever happened?" This quickly lead to "How many new public blockchain transactions can we reasonably expect in the coming years?"
We were surprised that, as far as we could tell, no one had previously published answers to either of these questions. So we set off to generate our own results. And today we're happy to share our findings.
The results were surprising, exciting, and encouraging.
Nodes act as a gateway to the Ethereum network. Before a miner can include your transaction in a block, a node must first accept it. And understanding how nodes accept transactions can unlock insights into how Ethereum works.
Our goal with this Mastering the Mempool series is to help you understand this crucial — but often under-explored — element of Web3. We suggest starting with our first post in the series, where we cover many of the core concepts of the mempool.
In this post, we explore how transactions enter the Ethereum mempool.
The mempool is the gateway to the blockchain. Before anything can be written on a block, it must first move through the mempool. And this important piece of Web3 is often overlooked.
Since the mempool dictates how every transaction gets written to and confirmed on-chain, understanding the mempool can help you understand what is happening with your in-flight transactions and unlock deep insights into how blockchains work.
In the course of building infrastructure to monitor the mempool, we've learned a lot about how it works. We want to share our insights about this fascinating part of the Ethereum ecosystem. To start, let’s introduce what the mempool is and why it matters to you and your Dapp.