What is Frontrunning?


This video serves as a short introduction to the concept of frontrunning as it applies to cryptocurrencies and smart contracts in modern blockchain systems such as Ethereum or Bitcoin. We show what frontrunning is, how it happens in blockchain systems today, and provide some examples of applications that may have issues with frontrunning.

Some additional places where frontrunning can be an issue in smart contract applications:
* Decentralized Exchanges
* Domain Registration (e.g. ENS)
* ICO participation
* Fraud Proofs
* On-chain Bug Bounties
* Any system where simultaneous actions are allowed and broadcasting an action leaks information about that action

Flash Boys 2.0 paper:

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2 gedachten over “What is Frontrunning?”

  1. The way for the little guy to defend against this is
    – buy crashes
    – buy big dips/ dca
    – HOLD long term ( more than a year)
    This bypasses all the trading noise over time and puts you in the better tax bracket for capital gains. Something a lot of day traders don't talk about but for all their profit 30 40% of it has to be compensated for high taxes. Otherwise, you're gambling poorly, with an
    80- 90% failure rate over the long term. If youre not already wealthy, dont expect to get wealth quickly, for every miracle overnight dream success, theres a un talked about graveyard of 100,000 fails. It is financial advice if I'm wrong come see me in 5 years with the proof.

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