> For the complete documentation index, see [llms.txt](https://docs.novarpc.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.novarpc.xyz/nova-rpc/why-use-a-private-mempool/understanding-mev/private-auctions.md). # Private Auctions Though MEV is intrinsically tied to the fundamental design of public, smart-contract-enabled blockchains, it can have negative externalities. Scenarios where multiple transactions are competing to be the first to modify a specific piece of the Ethereum state can degrade the user experience for everyday users, leading to network congestion, instability, and gas fee spikes. The solutions: * The Ethereum ecosystem adopted **private auctions** (see [Proposer Builder Seperation](https://ethereum.org/roadmap/pbs/)), essentially forcing the competition for blockspace rank offchain. This prevents failed transactions from ever hitting the public chain, keeping gas prices more stable for regular users. * To improve the experience of those transacting onchain, **order flow auctions (OFAs)** emerged as intermediaries between tx originators and block builders. OFAs were developed to protect users from front-running and sandwich attacks, and to capture back-running opportunities for those that created the value. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.novarpc.xyz/nova-rpc/why-use-a-private-mempool/understanding-mev/private-auctions.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.