Frontrunning attacks in blockchain refer to a malicious practice where an attacker observes a pending transaction and then submits their own transaction with a higher fee to ensure it is processed first. This allows the attacker to profit from the price movement or information revealed by the original transaction. Such attacks exploit the transparency of transaction mempools and the miner’s ability to order transactions. They undermine transaction fairness and market integrity.
Context
Frontrunning attacks are a persistent challenge in decentralized finance, particularly on high-activity blockchain networks where transaction ordering significantly impacts outcomes. Current discussions address various mitigation strategies, including proposer-builder separation (PBS), batch auctions, and encryption techniques to conceal transaction details until execution. The ongoing effort to reduce these attacks is critical for fostering a more equitable and trustworthy decentralized trading environment.
The analysis of DAG-based systems reveals three new frontrunning attack vectors, proving high-throughput architectures introduce complex, unmitigated MEV risk.
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