How Can Time-Stamping Be Compromised by an Internal Actor on a CEX? ⎊ Path

How Can Time-Stamping Be Compromised by an Internal Actor on a CEX?

An internal actor could compromise time-stamping by tampering with the exchange's internal clock synchronization system (e.g. the PTP master clock) or by manipulating the software that records the time-stamp for their own proprietary orders. This would allow them to falsely record their trade as preceding a client's order.

However, exchanges use redundant, secured, and externally audited time sources to make this extremely difficult.

What Is the Role of an Order Book in Preventing or Facilitating Front-Running on a Centralized Exchange (CEX)?

How Does the Concept of “Block Time” on a Blockchain Relate to CEX Time-Stamping?

Explain How “Priority Fees” (Tips) Are Used in Modern Blockchain Fee Markets

How Does the “Base Fee” and “Priority Fee” System Work under EIP-1559?

What Is a “Pro-Rata” Matching System and How Does It Differ from Price-Time Priority?

Is Time-Stamping on a Blockchain Inherently More Reliable than on a CEX?

How Does an exchange’S’matching Engine’ Process Different Types of Orders?

How Does the Immutability of a Blockchain Protect Financial Derivatives Records?

Glossar

Clock Synchronization System

Architecture ⎊ A Clock Synchronization System is the specialized infrastructure responsible for distributing a highly accurate time signal from a master reference source, typically a GPS or atomic clock, across all computational nodes within a trading environment.