Definition ∞ Back Running Elimination refers to the mitigation of a specific type of market manipulation where an observer sees a pending transaction and then submits their own transaction to execute immediately after it, profiting from the price movement the first transaction caused. This process seeks to prevent opportunistic arbitrage that exploits public knowledge of unconfirmed transactions. The goal is to establish a more equitable transaction environment within decentralized exchanges and other on-chain applications.
Context ∞ The topic of Back Running Elimination is central to the debate surrounding transaction ordering and fairness in decentralized finance. Current efforts often involve various transaction privacy solutions and alternative ordering mechanisms within block construction. The ongoing challenge involves balancing transaction throughput with the prevention of these front-running related exploits, which remains a significant area of protocol development.
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