Off-chain collusion describes secret agreements or coordinated actions among participants that occur outside the transparent and verifiable mechanisms of a blockchain or decentralized protocol. These agreements aim to manipulate outcomes, gain unfair advantages, or subvert the intended rules of the system. Such activities are difficult to detect or prevent through on-chain logic alone. They pose a significant threat to the integrity and fairness of decentralized applications and markets.
Context
Off-chain collusion presents a persistent challenge for the security and fairness of decentralized systems, particularly in areas like transaction ordering (MEV) and governance votes. Participants might coordinate privately to front-run trades or influence proposals, bypassing the protocol’s design. Researchers and developers are constantly exploring new cryptographic techniques and mechanism designs to deter or mitigate the impact of such hidden agreements. The objective involves strengthening the economic security of decentralized applications against external manipulation.
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