Understanding MEV starts with how blocks are assembled. Transactions do not enter blocks in arrival order — block producers optimize for profit within protocol rules.
Searchers monitor the mempool for large swaps, liquidatable positions, and oracle updates. Transparency enables extraction — every pending trade is a signal to anyone running a node.
Higher priority fees still influence ordering within blocks. During competitive MEV events, gas auctions spike network costs for everyone — not just the bots competing for inclusion.