Definition ∞ Back-running is a predatory trading strategy in blockchain environments where an attacker observes a pending transaction and submits their own transaction to execute immediately after it. This maneuver exploits price changes or state alterations caused by the initial transaction to gain profit. It is a specific form of Miner Extractable Value (MEV) that impacts transaction fairness.
Context ∞ Back-running represents a persistent challenge within decentralized finance, leading to significant value extraction from ordinary users. Debates focus on protocol design modifications and transaction ordering mechanisms to counter this activity. Future developments include proposals for fairer transaction sequencing, such as threshold encryption and various forms of batch auctions, to reduce opportunities for front-running and back-running.
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