Transaction execution fairness refers to the principle that all valid transactions submitted to a blockchain network should be processed and ordered without undue preference or manipulation by block producers. This implies that transactions should be included in blocks based on objective criteria, such as timestamp or fee, rather than arbitrary or self-serving decisions. Ensuring fairness helps to prevent frontrunning and other forms of value extraction that can disadvantage ordinary users. It supports a more equitable and transparent market environment.
Context
The pursuit of transaction execution fairness is a critical objective in blockchain protocol design, especially in decentralized finance where ordering can have significant financial implications. Discussions often involve the trade-offs between maximizing block producer revenue through maximal extractable value and protecting users from predatory practices. Innovations in ordering mechanisms, such as proposer-builder separation and encrypted mempools, aim to reduce the opportunities for unfair transaction sequencing.
Research exposes how leaderless DAG consensus protocols, designed for throughput, introduce a new, exploitable frontrunning vector during transaction finalization.
We use cookies to personalize content and marketing, and to analyze our traffic. This helps us maintain the quality of our free resources. manage your preferences below.
Detailed Cookie Preferences
This helps support our free resources through personalized marketing efforts and promotions.
Analytics cookies help us understand how visitors interact with our website, improving user experience and website performance.
Personalization cookies enable us to customize the content and features of our site based on your interactions, offering a more tailored experience.
