We consider front-running to be a course of action where an entity benefits from prior access to privileged market information about upcoming transactions and trades. Front-running has been an issue in financial instrument markets since the 1970s. With the advent of the blockchain technology, front-running has resurfaced in new forms we explore here, instigated by blockchain’s decentralized and transparent nature. In this paper, we draw from a scattered body of knowledge and instances of front-running across the top 25 most active decentral applications (DApps) deployed on Ethereum blockchain. Additionally, we carry out a detailed analysis of Status.im initial coin offering (ICO) and show evidence of abnormal miner’s behavior indicative of front-running token purchases. Finally, we map the proposed solutions to front-running into useful categories.
CITATION STYLE
Eskandari, S., Moosavi, S., & Clark, J. (2020). SoK: Transparent Dishonesty: Front-Running Attacks on Blockchain. In Lecture Notes in Computer Science (including subseries Lecture Notes in Artificial Intelligence and Lecture Notes in Bioinformatics) (Vol. 11599 LNCS, pp. 170–189). Springer. https://doi.org/10.1007/978-3-030-43725-1_13
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