Definition ∞ Transaction ordering attacks are a class of exploits in blockchain systems where malicious actors manipulate the sequence of transactions within a block to gain an unfair advantage. This can involve front-running, where an attacker sees a pending transaction and places their own transaction ahead of it to profit. Such attacks exploit the transparency of transaction pools and the control block producers have over transaction inclusion order. They undermine market fairness and network integrity.
Context ∞ Transaction ordering attacks are a significant concern in decentralized finance, particularly on networks like Ethereum, where they can lead to substantial losses for users in automated market makers and lending protocols. The discussion centers on developing MEV (Maximal Extractable Value) mitigation strategies, including private transaction relays and sophisticated ordering algorithms, to prevent these exploits. Future solutions aim to create more robust and fair transaction inclusion mechanisms to protect users from predatory practices.
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