A malicious practice where an attacker observes a pending transaction on a blockchain and then submits their own transaction with a higher gas fee to ensure it is processed first. This allows the attacker to profit from the price movement caused by the original transaction or to gain an advantage in decentralized exchanges. Front-running exploits the transparency and sequential processing nature of blockchain transactions. It undermines fair market practices and can lead to significant losses for legitimate users.
Context
Front-running attacks are a persistent issue in decentralized finance, particularly on platforms with high transaction volume and predictable execution order. Solutions being explored include private transaction relays, proposer-builder separation, and various anti-MEV mechanisms to obscure or randomize transaction ordering. The ongoing challenge is to prevent these exploitative practices while maintaining the public and verifiable nature of blockchain operations.
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