What Is a “Commit-Reveal” Scheme and How Is It Used in Decentralized Finance (DeFi) Options?

A commit-reveal scheme is a cryptographic protocol used to ensure fairness and prevent front-running in decentralized applications, especially auctions or trading. In DeFi options, a trader might first 'commit' to their trade parameters (e.g. strike price, quantity) by publishing the hash of those parameters.

Later, in the 'reveal' phase, they publish the original parameters. This proves they committed to the trade before seeing others' actions, preventing manipulation.