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What Is the Primary Difference in Front-Running Mitigation between Centralized (CEX) and Decentralized (DEX) Exchanges?

CEXs prevent front-running through centralized control, regulatory compliance, and internal trade surveillance systems. They manage the order book and transaction execution sequence privately, making traditional front-running by external actors impossible.

DEXs, however, operate on public blockchains where pending transactions are visible in the mempool. Mitigation on DEXs is therefore technical and protocol-based, involving solutions like private transaction pools, transaction batching, and fair sequencing to counteract the transparency of the public ledger.

The core difference is centralized governance versus decentralized protocol design.

How Do ‘Decentralized Exchanges’ (DEXs) Differ from ‘Centralized Exchanges’ (CEXs)?
What Is the Primary Difference in Front-Running Prevention between a CEX and a DEX?
How Do Private Transaction Relays Prevent the Visibility Required for Front-Running?
How Do CEXs Typically Use Trade Surveillance to Detect Front-Running?