How Does the Public Nature of the Blockchain Mempool Create a Unique Vulnerability for Front-Running?

Unlike traditional markets where order information is non-public and controlled by intermediaries, the blockchain mempool makes pending transactions publicly visible. This allows automated bots to scan this data, identify potentially profitable trades, and use higher gas fees to jump the queue.

The transparency, which is a core feature of blockchain, ironically creates a vulnerability that allows for sophisticated, high-speed, and decentralized front-running.