How Does Transaction Batching Serve a Similar Anti-Front-Running Purpose to Commit-Reveal?
Transaction batching involves aggregating multiple individual transactions into a single block or execution unit, which are then processed simultaneously at a single price point. This process prevents front-running because the individual transaction details are hidden until the entire batch is executed.
By executing all orders in the batch at the same time and price, there is no temporal priority for a front-runner to exploit, similar to how commit-reveal hides the order's content until execution.
Glossar
Batching
Strategy ⎊ Batching is a strategic approach in financial systems where multiple individual operations are grouped together for collective processing.
Decentralized Sequencers
Function ⎊ Decentralized Sequencers are specialized off-chain actors or mechanisms responsible for ordering and batching transactions from Layer 2 rollups before submission to the main chain, a process that influences transaction finality timing.
Temporal Priority
Priority ⎊ Temporal priority is the fundamental market rule dictating that among multiple competing orders at the same price level, the order submitted earlier in time receives precedence for execution.
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.
Transaction Batching
Transaction ⎊ The aggregation of multiple cryptocurrency, options, or derivatives transactions into a single, consolidated unit for processing and settlement.