docs(developers): payment methods rewrite

add a table for a quick overview. fixup markdown syntax to be more legible on site
manifoldfinance · Jul 24, 2024 · 7651ef6 · 7651ef6
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commit 7651ef6
Showing 1 changed file with 33 additions and 28 deletions.
diff --git a/docs/Developers/payment-methods.md b/docs/Developers/payment-methods.md
@@ -4,47 +4,52 @@ description: Classification of variouus payment methods
 tags: ["primary market", "validators", "builders", "searchers", "payment"]
 ---
 
-To further classify the payment methods, we can consider the broader context of Ethereum block building, including both
-traditional and MEV-Auction scenarios as it relates to payment mechanisms.
+# Classification of Payment Methods in Ethereum Block Building
 
-> This classification covers a range of payment methods from the simplest direct payments to more complex arrangements
-> involving smart contracts and off-chain agreements.
+To further classify the payment methods, we can consider the broader context of Ethereum block building, including both traditional and MEV-Auction scenarios as it relates to payment mechanisms.
 
-1.  Direct Payment Method
+> This classification covers a range of payment methods from the simplest direct payments to more complex arrangements involving smart contracts and off-chain agreements.
 
--   **Description**: The most straightforward method where the block proposer (validator) receives the transaction fees
-    directly from the transactions included in the block.
--   **Use Case**: Commonly used in standard Ethereum block building.
 
-2.  Coinbase Transfer Payment Method
+| **Payment Method**                      | **Use Case**                                                                                          | **Traditional Scenario** | **MEV Auction Scenario** |
+|-----------------------------------------|--------------------------------------------------------------------------------------------------------|--------------------------|--------------------------|
+| Direct Payment Method                   | Commonly used in standard Ethereum block building.                                                     | Yes                      | No                       |
+| Coinbase Transfer Payment Method        | Utilized in both traditional and MEV-Auction scenarios.                                                | Yes                      | Yes                      |
+| Indirect Address Payment (IAP) Method   | Specific to MEV-Auction, where builders and proposers are distinct entities.                           | No                       | Yes                      |
+| Intermediate Transfer Payment (ITP) Methods | Specific to MEV-Auction, particularly when involving smart contracts or third-party addresses.         | No                       | Yes                      |
+| Smart Contract-Based Payment Method     | Useful in decentralized block building scenarios or when complex payment distributions are required.    | Yes                      | Yes                      |
+| Off-Chain Payment Method                | Might be used in private agreements between parties involved in block building.                         | Yes                      | Yes                      |
 
--   **Description**: In this method, the transaction fees and MEV rewards are transferred directly to the block
-    proposer's address via the coinbase transaction.
--   **Use Case**: Utilized in both traditional and MEV-Auction scenarios.
+### Direct Payment Method
 
-3.  Indirect Address Payment (IAP) Method
+- **Description**: The most straightforward method where the block proposer (validator) receives the transaction fees directly from the transactions included in the block.
+- **Use Case**: Commonly used in standard Ethereum block building.
 
--   **Description**: The builder uses a different address to pay the proposer through an end-of-block transaction,
-    separate from the address receiving the block’s transaction fees.
--   **Use Case**: Specific to MEV-Auction, where builders and proposers are distinct entities.
+### Coinbase Transfer Payment Method
 
-4.  Intermediate Transfer Payment (ITP) Methods
+- **Description**: In this method, the transaction fees and MEV rewards are transferred directly to the block proposer's address via the coinbase transaction.
+- **Use Case**: Utilized in both traditional and MEV-Auction scenarios.
 
--   **Description**: Involves a two-step process where the builder first transfers the payment to an intermediary
-    address, which then sends it to the proposer.
--   **Use Case**: Also specific to MEV-Auction, particularly when involving smart contracts or third-party addresses.
+### Indirect Address Payment (IAP) Method
+
+- **Description**: The builder uses a different address to pay the proposer through an end-of-block transaction, separate from the address receiving the block’s transaction fees.
+- **Use Case**: Specific to MEV-Auction, where builders and proposers are distinct entities.
+
+### Intermediate Transfer Payment (ITP) Methods
+
+- **Description**: Involves a two-step process where the builder first transfers the payment to an intermediary address, which then sends it to the proposer.
+- **Use Case**: Also specific to MEV-Auction, particularly when involving smart contracts or third-party addresses.
+
+### Smart Contract-Based Payment Method
 
-5.  Smart Contract-Based Payment Method
+- **Description**: Payments are handled through a smart contract, which can programmatically distribute rewards based on predefined rules.
+- **Use Case**: Useful in decentralized block building scenarios or when complex payment distributions are required.
 
--   **Description**: Payments are handled through a smart contract, which can programmatically distribute rewards based
-    on predefined rules.
--   **Use Case**: Useful in decentralized block building scenarios or when complex payment distributions are required.
+### Off-Chain Payment Method
 
-6.  Off-Chain Payment Method
+- **Description**: Payment occurs outside the Ethereum blockchain, possibly through other cryptocurrencies or traditional banking systems.
+- **Use Case**: Might be used in private agreements between parties involved in block building.
 
--   **Description**: Payment occurs outside the Ethereum blockchain, possibly through other cryptocurrencies or
-    traditional banking systems.
--   **Use Case**: Might be used in private agreements between parties involved in block building.
 
 ## Builder Payment Methods