How Does a Transaction’s Gas Fee Relate to Its Priority in the Mempool?
In most blockchain systems, the gas fee acts as a bid for inclusion in the next block. Transactions with higher gas fees are typically prioritized by miners or validators because they offer greater rewards.
This is the mechanism exploited in front-running: the front-runner pays a higher fee than the victim's pending transaction to ensure their trade is processed first. This priority system is fundamental to the MEV problem.
Glossar
Gas Fee Mechanism
Mechanism ⎊ The gas fee mechanism, within cryptocurrency, options trading, and financial derivatives, represents the cost incurred to execute a transaction or smart contract on a blockchain or decentralized platform.
Gas Fees
Mechanism ⎊ Gas fees represent the computational cost required to execute transactions or smart contracts on a blockchain network, particularly Ethereum and its Layer-2 solutions, functioning as a deterrent against denial-of-service attacks and a reward for network validators.
Gas Fee
Mechanism ⎊ Gas fees represent the computational cost required to execute a transaction or smart contract on a blockchain network, particularly Ethereum and its Layer-2 solutions, functioning as a deterrent against denial-of-service attacks and a reward for network validators.