What Is the Disadvantage of Using a Commit-Reveal Scheme for High-Speed Trading?

The primary disadvantage of using a commit-reveal scheme for high-speed trading is the inherent time delay introduced by the two-step process. High-speed trading, such as arbitrage, relies on executing trades within milliseconds to capture fleeting profit opportunities.

The commit-reveal scheme requires a full block confirmation between the commit and reveal phases, which can take seconds or minutes. This delay makes the strategy too slow to be viable for time-sensitive trading strategies, as the market price will likely have moved significantly before the trade is executed.