What Are the Key Differences in Front-Running Prevention between CEXs and DEXs?
Centralized exchanges (CEXs) prevent front-running primarily through internal controls, regulatory oversight, and legal prohibitions, as they control the order book and transaction execution. They rely on surveillance and anti-fraud systems.
Decentralized exchanges (DEXs), however, operate on public blockchains where pending transactions are visible in the mempool, making traditional legal prohibitions ineffective. DEX prevention relies heavily on technical measures like private transaction relays (Flashbots), commit-reveal schemes, and specialized smart contract logic to obscure or randomize transaction ordering.