How Does a Private Transaction Relay on a DEX Work?
A private transaction relay allows a user to send a transaction directly to a block builder or validator without broadcasting it to the public mempool first. This keeps the transaction details hidden until it is included in a block.
By bypassing the public mempool, the relay prevents front-running bots from detecting and exploiting the pending trade, ensuring the user gets better execution.
Glossar
Relay
Mechanism ⎊ Within cryptocurrency derivatives and options trading, a Relay functions as a programmatic bridge facilitating the transfer of assets or data between disparate blockchain networks or systems.
Transaction Relay
Execution ⎊ Transaction Relay represents the propagation of confirmed transaction data across a distributed ledger network, crucial for maintaining consensus and network integrity.
Private Transaction Relay
Relay ⎊ A Private Transaction Relay (PTR) within cryptocurrency, options, and derivatives represents a sophisticated architectural pattern designed to obfuscate the origin and destination of financial transactions, enhancing privacy and potentially mitigating regulatory scrutiny.
Private Transaction
Privacy ⎊ A Private Transaction is a cryptographic operation submitted directly to a block builder or validator, bypassing the public mempool where pending transactions are typically exposed to all network participants.