How Do Commit-Reveal Schemes Technically Prevent Front-Running in Blockchain Transactions? ⎊ Path

How Do Commit-Reveal Schemes Technically Prevent Front-Running in Blockchain Transactions?

A commit-reveal scheme is a two-step process that prevents front-running by obscuring a transaction's details. First, the user submits a 'commitment' ⎊ a cryptographic hash of the transaction details ⎊ to the blockchain.

This proves the order's intent and timing without revealing the specifics. Second, the user submits the actual transaction details, the 'reveal,' only after the commitment is confirmed in a block.

Since the specific trade details are not public until execution, front-runners cannot profitably place an order ahead of it.

What Is a Potential Vulnerability of a Commit-Reveal Scheme If the ‘Reveal’ Step Is Delayed?

Can a DEX Protocol Be Designed to Be Inherently Resistant to Front-Running?

What Are the Security Trade-Offs of Using a Commit-Reveal Scheme for High-Frequency Trading?

What Are the Two Distinct Phases of a Commit-Reveal Scheme?

How Do Commit-Reveal Schemes on DEXs Specifically Prevent Front-Running?

Does the Use of a Private Mempool Negate the Need for a Commit-Reveal Scheme?

How Does Transaction Batching Serve a Similar Anti-Front-Running Purpose to Commit-Reveal?

Explain How a Commit-Reveal Scheme Prevents a Transaction’s Content from Being Front-Run

Glossar

Commit-Reveal

Mechanism ⎊ Commit-Reveal protocols, within decentralized finance, represent a staged disclosure of trading intentions, initially committing to a transaction and subsequently revealing the specifics.