Definition ∞ An order fairness protocol is a set of rules designed to ensure that transactions are processed in a fair and predictable sequence. In blockchain and decentralized exchange environments, this protocol aims to prevent issues like front-running, where malicious actors exploit knowledge of pending transactions to gain an unfair advantage. It achieves this by employing mechanisms that enforce a consistent and verifiable ordering of operations. Such protocols contribute to a more equitable and transparent trading environment.
Context ∞ News often discusses order fairness protocols in the context of decentralized finance and the mitigation of miner extractable value. The ongoing development of these protocols seeks to address the technical challenges of maintaining fair transaction sequencing in a distributed system. Innovations in this area are critical for the integrity of decentralized markets.
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