Front-running, flash bots and keeping things fair in the crypto market By Cointelegraph
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Decentralized finance (DeFi) has the opportunity to democratize access to financial markets that have typically only been open to the rich and powerful. But, DeFi will only survive and continue to grow if we take steps to ensure things are safe, private and fair for both retail and institutional investors. When faced with predatory market behaviors such as miner extractable value (MEV) and front-running attacks it opens up old wounds to a “Flash Boys” era of traditional finance.
DeFi can and should do better by not allowing the failures of the past to come creeping back into the future. Fortunately, by implementing cryptographic mechanisms that integrate transactional privacy into public blockchains, information can be proven with things such as an order book without being revealed. This seemingly magical mathematical tactic not only shields transactions from the aforementioned behavior but also allows for auditability, all while still preserving the privacy of individual or institutional accounts. This approach will foster a more accessible DeFi industry and provide a more equitable and liquid market for all.
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Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
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Decentralized finance (DeFi) has the opportunity to democratize access to financial markets that have typically only been open to the rich and powerful. But, DeFi will only survive and continue to grow if we take steps to ensure things are safe, private and fair for both retail and institutional investors. When faced with predatory market behaviors such as miner extractable value (MEV) and front-running attacks it opens up old wounds to a “Flash Boys” era of traditional finance.
DeFi can and should do better by not allowing the failures of the past to come creeping back into the future. Fortunately, by implementing cryptographic mechanisms that integrate transactional privacy into public blockchains, information can be proven with things such as an order book without being revealed. This seemingly magical mathematical tactic not only shields transactions from the aforementioned behavior but also allows for auditability, all while still preserving the privacy of individual or institutional accounts. This approach will foster a more accessible DeFi industry and provide a more equitable and liquid market for all.
Continue Reading on Coin Telegraph
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
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