SoK: Preventing Transaction Reordering Manipulations in Decentralized Finance
Lioba Heimbach, Roger Wattenhofer
Abstract
User transactions on Ethereum's peer-to-peer network are at risk of being attacked. The smart contracts building decentralized finance (DeFi) have introduced a new transaction ordering dependency to the Ethereum blockchain. As a result, attackers can profit from front- and back-running transactions. Multiple approaches to mitigate transaction reordering manipulations have surfaced recently. However, the success of individual approaches in mitigating such attacks and their impact on the entire blockchain remains largely unstudied.
Topics & Concepts
BlockchainDatabase transactionComputer scienceSmart contractDependency (UML)Transaction processingScheme (mathematics)Computer securityDistributed transactionProfit (economics)DatabaseArtificial intelligenceMicroeconomicsMathematicsEconomicsMathematical analysisBlockchain Technology Applications and SecurityCryptography and Data SecurityDistributed systems and fault tolerance