What Is the ‘Commitment’ Step in a Commit-Reveal Scheme and What Information Does It Contain?

The 'commitment' step is the first phase of the two-step commit-reveal process. In this step, the user calculates a cryptographic hash of their intended transaction details, which include the trade size, price, and a random secret number (salt).

The user then submits this hash to the blockchain. Crucially, the commitment contains no information that a front-runner can use to determine the trade's specifics, but it cryptographically proves that the user decided on the trade before the transaction was confirmed.