Front-running prevention refers to mechanisms designed to stop malicious actors from exploiting information about pending transactions to their own advantage. In blockchain systems, this typically involves preventing a transaction from being executed before another, more profitable one, thereby ensuring fairness in execution order. Such measures are vital for maintaining market integrity.
Context
The development and implementation of front-running prevention techniques are prominent topics in the optimization of decentralized exchanges and other on-chain trading protocols. Discussions frequently address the efficacy of various methods, such as private transaction relays, commit-reveal mechanisms, and batch auctions, in mitigating this threat. Ongoing research seeks to create more resilient systems against such predatory practices.
This research leverages game theory to model Maximal Extractable Value dynamics, proposing commit-reveal and threshold encryption mechanisms to enhance DeFi fairness.
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