How Does the Use of Layer 2 Solutions Affect the Feasibility of Commit-Reveal for HFT?
Layer 2 (L2) solutions, such as rollups, significantly improve the feasibility of commit-reveal for HFT by drastically reducing transaction costs and latency. L2s process transactions off-chain, making the two-step commit-reveal process much cheaper and faster than on Layer 1.
The lower cost mitigates the gas overhead, and the faster L2 block times reduce the latency between the commit and the reveal, making the overall process more palatable for speed-sensitive HFT strategies.