What Is the Primary Difference in Front-Running Prevention between a CEX and a DEX? ⎊ Path

What Is the Primary Difference in Front-Running Prevention between a CEX and a DEX?

A Centralized Exchange (CEX) prevents front-running through internal surveillance, regulatory compliance, and a private order book that is not publicly visible until execution. Front-running on a CEX is a violation of market rules and often illegal.

A Decentralized Exchange (DEX) operates on a public blockchain where the order book (mempool) is transparent. Prevention relies on cryptographic and technical solutions like MEV-protection tools and reduced slippage tolerance, as there is no central authority to enforce traditional rules.

What Is the Primary Difference in Front-Running Risk between CEXs and DEXs?

In What Way Do Layer-2 Scaling Solutions Reduce Front-Running Risk?

How Do Decentralized Exchanges (DEXs) Handle Bid-Offer Spreads Differently than Centralized Exchanges (CEXs)?

How Do “Dark Pools” in Traditional Finance Compare to Private Mempools in DeFi?

How Do Private Transaction Relays Prevent the Visibility Required for Front-Running?

What Is Slippage Tolerance and How Does Adjusting It Mitigate Front-Running Risk?

What Are the Key Differences in Front-Running Prevention between CEXs and DEXs?

How Do Surveillance Systems on CEXs Enforce MAR Principles?