Does a CEX Utilize a Mempool Concept, and If So, How Is It Different from a Blockchain Mempool? ⎊ Path

Does a CEX Utilize a Mempool Concept, and If So, How Is It Different from a Blockchain Mempool?

A CEX uses an internal, private system that functions conceptually like a mempool, often called an "order queue" or "pending order book." It holds client orders before they are matched. The key difference is that this queue is not public.

It is a proprietary, centralized database managed by the exchange, making it inaccessible to external front-running bots. Only CEX employees with privileged access could potentially exploit this internal queue, which is why "Chinese Walls" are necessary.

Explain the Function of a ‘Private Transaction’ or ‘Private Mempool’ in Preventing Front-Running

How Does a “Private Transaction Relay” Help Mitigate the Risk of MEV and Front-Running?

Why Is a CEX Order Book Susceptible to Insider Trading Rather than External Front-Running?

What Is the Trust Trade-off When Using a Private Mempool Service?

What Is the Difference between a Public and a Private Mempool?

How Do Private Transaction Relays Prevent the Visibility Required for Front-Running?

What Are the Key Differences between Front-Running in Traditional Options Markets and Crypto Spot Markets?

What Is the Main Argument for Keeping the Mempool Public despite the Front-Running Risk?

Glossar

Mempool

Component ⎊ The Mempool is the waiting area where broadcasted but unconfirmed cryptocurrency transactions reside before being selected by a miner or validator for inclusion in the next block.