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mev-the-hidden-tax-of-crypto
Blog

The Hidden Cost of Your Default RPC

An analysis of how default RPC providers like Infura and Alchemy have become opaque toll booths, extracting value from user transactions via exclusive MEV arrangements, and what builders can do about it.

introduction
THE HIDDEN TAX

Introduction

Your default RPC endpoint is a silent, multi-faceted tax on your application's performance and user experience.

Public RPCs are performance bottlenecks. They introduce latency, rate limits, and unreliable state data, directly degrading your application's responsiveness and reliability.

The cost is more than just latency. It manifests as failed transactions, inaccurate data for oracles like Chainlink, and higher gas fees from suboptimal transaction bundling.

This creates a silent revenue leak. Every dropped user session or failed DeFi arbitrage on Uniswap due to RPC lag represents direct, measurable revenue loss.

Evidence: A 2023 study by Alchemy showed applications using dedicated RPCs reduced latency by 300ms and increased successful transaction rates by 15%.

thesis-statement
THE INFRASTRUCTURE TRAP

Thesis Statement

Default RPC endpoints are a silent tax on performance, reliability, and user experience, creating systemic risk for any protocol.

Default RPCs are performance bottlenecks. They centralize traffic through a single gateway, creating latency spikes and failed transactions during network congestion, directly impacting your protocol's uptime.

You are outsourcing core infrastructure. Relying on a provider like Infura or Alchemy cedes control over data consistency and liveness guarantees, making your application's reliability a function of their SLO.

The cost is not just monetary. The hidden expense is degraded user experience from slow confirmations and technical debt from being locked into a provider's specific API implementations.

Evidence: During the 2022 FTX collapse, public RPC endpoints were overwhelmed, causing transaction failures across major dApps while private endpoints maintained service.

THE HIDDEN COST OF YOUR DEFAULT RPC

The RPC Stack: Who Controls Your Flow?

Comparing the operational and financial trade-offs between public, private, and aggregated RPC endpoints.

Critical Feature / MetricPublic Default RPC (e.g., Infura, Alchemy)Private Dedicated NodeAggregated RPC (e.g., Chainscore, Pocket, Ankr)

Request Latency (p95)

200-500 ms

< 100 ms

< 150 ms

Uptime SLA Guarantee

99.5%

99.95%

99.9%

Request Rate Limits

~300k/day (free tier)

Unlimited

Unlimited

Censorship Resistance

Data Privacy (Request Logging)

Cost Model

Tiered / Pay-per-request

Fixed $1k-5k/month

Pay-per-request + fixed tiers

Multi-Chain Support

MEV Protection / Order Flow Control

deep-dive
THE INFRASTRUCTURE TRAP

Deep Dive: From Public Good to Private Revenue Stream

The free RPC endpoint is a subsidized gateway to a private data monetization engine.

Your default RPC is a loss leader. Public RPC endpoints from providers like Infura and Alchemy are free because they capture your application's user data and transaction flow, which they monetize through premium APIs and enterprise analytics.

This creates a silent vendor lock-in. Your dApp's performance and user experience become dependent on a centralized provider's infrastructure, creating systemic risk similar to the AWS dependency problem in Web2.

The cost is architectural sovereignty. You trade low latency for a black-box service that controls your node access, limits your query capabilities, and can censor or throttle traffic based on its own policies.

Evidence: The 2022 Infura Ethereum mainnet outage, which broke MetaMask and defi protocols, demonstrated the fragility of this centralized model for critical blockchain infrastructure.

counter-argument
THE REAL COST STRUCTURE

Counter-Argument: "But They Need to Pay for Servers!"

The 'free' RPC model is a data arbitrage business, not a charity.

The business model is arbitrage. Free RPC providers monetize user data and transaction flow, not server costs. They sell aggregated analytics, front-run MEV opportunities, and bundle transactions to L2 sequencers like Arbitrum or Optimism for profit.

You are the product. Your transaction data has value. Services like Infura and Alchemy analyze patterns to sell market intelligence to hedge funds and trading firms, creating a hidden data monetization layer.

Compare to public infrastructure. A truly decentralized network like Helium or Pocket Network distributes costs across node operators who are directly compensated. The 'free' model centralizes data control to capture value.

Evidence: Major providers process billions of queries daily. This scale makes user data a high-value asset, far outweighing the AWS infrastructure costs they publicly cite as justification.

case-study
THE HIDDEN COST OF YOUR DEFAULT RPC

Case Study: The Sandwich Attack You Never Saw

Frontrunning isn't just about public mempools; your RPC endpoint is a silent vector for value extraction.

01

The Problem: The RPC as a Spy

Your wallet's default public RPC sees your transaction intent before it's broadcast. This creates a zero-latency information advantage for sophisticated operators.\n- Order flow is monetized via private channels to searchers.\n- Your transaction latency is artificially inflated to create MEV opportunities.\n- You pay for this via increased slippage and failed trades.

~500ms
Intent Lag
$1B+
Annual MEV
02

The Solution: Private Transaction Propagation

Bypass the public mempool entirely. Send transactions directly to block builders or through private relay networks like Flashbots Protect or BloXroute.\n- Removes the frontrunning signal from the public RPC layer.\n- Guarantees transaction inclusion without revealing intent prematurely.\n- Integrates with UniswapX and CowSwap for intent-based protection.

>99%
Reduced Attack Surface
0s
Public Exposure
03

The Architecture: Decentralized RPC Networks

Replace single-point-of-failure RPCs with decentralized networks like POKT Network or Lava Network. These distribute requests across many nodes, obscuring the origin.\n- No single entity can monopolize your order flow.\n- Geographic distribution reduces latency and censorship risk.\n- Cryptoeconomic incentives align nodes with user success, not extractors.

10k+
Node Providers
-40%
Slippage
04

The Trade-Off: Latency vs. Cost

Privacy and decentralization introduce new variables. Direct relays add ~100-200ms but save you from sandwich losses. Decentralized RPCs may have higher variance but break monopolies.\n- Calculate your MEV tax vs. infrastructure cost.\n- Benchmark against solutions like Chainlink CCIP for cross-chain or EigenLayer for shared security.\n- The optimal setup is context-specific (DeFi vs. NFT mint).

200ms
Privacy Premium
5-15%
Potential Savings
FREQUENTLY ASKED QUESTIONS

FAQ: For Builders and Users

Common questions about the hidden costs and risks of relying on a default RPC endpoint.

The main risks are degraded performance, censorship, and data privacy leaks. A default RPC is often a public, rate-limited endpoint shared by millions, leading to slow transactions, dropped requests, and potential frontrunning. Services like Infura or Alchemy offer premium tiers to mitigate this, but introduce centralization.

future-outlook
THE COST OF CONVENIENCE

Future Outlook: The End of Opaque Defaults

The industry will shift from blind trust in default RPCs to verifiable, performance-optimized infrastructure.

Default RPCs are a liability. They introduce a single point of failure and performance degradation that developers inherit but cannot audit. This creates systemic risk for applications built on Alchemy or Infura defaults.

The future is modular RPCs. Protocols like Chainscore and Lava Network are decoupling execution from data provision, allowing developers to route requests based on latency, cost, and uptime. This is the intent-centric architecture applied to infrastructure.

Performance becomes a verifiable SLA. Instead of trusting a provider's dashboard, on-chain attestations and tools like Blockpour will let anyone audit RPC performance in real-time. The market will price risk based on provable uptime.

Evidence: The Solana RPC crisis of 2022, where default endpoints failed for days, demonstrated the existential cost of opaque infrastructure. This catalyzed the development of competitive, decentralized RPC networks.

takeaways
THE HIDDEN COST OF YOUR DEFAULT RPC

Takeaways: What CTOs & Architects Must Do

Your RPC is your application's central nervous system. A weak link here compromises everything.

01

Treat Your RPC as Critical Infrastructure

A public RPC is a shared, noisy, and untrusted endpoint. It's a single point of failure for latency, censorship, and data integrity.

  • Key Benefit: Guaranteed performance SLAs and dedicated resources.
  • Key Benefit: Mitigate front-running and MEV extraction risks for users.
  • Key Benefit: Eliminate downtime from public endpoint rate-limiting.
99.9%+
Uptime SLA
~200ms
P95 Latency
02

Decouple from Single-Provider Lock-in

Relying on one provider's API creates vendor risk and prevents optimization. Architect for multi-RPC failover and load balancing.

  • Key Benefit: Automatic failover during outages using services like Chainstack, Alchemy, or QuickNode.
  • Key Benefit: Route traffic based on latency, geographic location, or specific method calls.
  • Key Benefit: Negotiate better rates by distributing traffic across providers.
0
Provider SPOF
-30%
Cost Optimized
03

Audit Your Data Integrity & Privacy Leaks

Public RPCs can serve stale or forked chain data. Your user's wallet addresses and transaction patterns are exposed to the provider.

  • Key Benefit: Use archive nodes for guaranteed historical data accuracy.
  • Key Benefit: Implement privacy layers or use providers with zero-logging policies.
  • Key Benefit: Validate RPC responses against cryptographic checkpoints or multiple sources.
100%
Data Finality
0-Log
Privacy Policy
04

Benchmark Real User Latency, Not Lab Tests

The latency your devs see is not what your global users experience. Geo-distribution and edge caching are non-negotiable.

  • Key Benefit: Deploy RPC endpoints in AWS Global Accelerator, Cloudflare, or use geo-distributed providers.
  • Key Benefit: Cache frequent, immutable calls (e.g., token metadata, ABI data) at the edge.
  • Key Benefit: Monitor real-user metrics, not just the health of your primary node.
5x
Global Speed
<1s
TTFD Goal
05

Price by Compute, Not by Request

A simple eth_blockNumber call costs the provider far less than a complex eth_getLogs query. Blind per-request pricing is inefficient.

  • Key Benefit: Adopt compute-unit pricing models (e.g., Ethereum's Compute Units) where available.
  • Key Benefit: Architect your dApp to batch requests and minimize on-chain queries.
  • Key Benefit: Negotiate custom plans based on your actual method call mix, not just volume.
-40%
OpEx Savings
CU-Based
Pricing Model
06

Own Your Node Fleet for Sovereignty

For protocols with $100M+ TVL or strict compliance needs, the long-term cost of control outweighs the operational burden.

  • Key Benefit: Complete control over software versions, upgrade timing, and security patches.
  • Key Benefit: Eliminate third-party API keys as an attack vector.
  • Key Benefit: Custom instrumentation and data pipelines for your specific needs.
100%
Sovereignty
$100M+
TVL Threshold
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10+
Protocols Shipped
$20M+
TVL Overall
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Your Default RPC is Leaking MEV (2025) | ChainScore Blog