THE FRONT RUNNING BOT— HOW BLOCK WALLET SOLVES THIS PROBLEM.

Today we’re delving into a very specific and obvious problem faced by CEX and DEX, The FRONT RUNNING BOT🥺 If you are a mobile wallet user interested in Defi trading, you might have heard of frontrunning. Without taking adequate precautions, your finances remain at risk from frontrunners. In this article, you will first, understand what a front running bot is, how it works and how blockwallet solves these alarming Defi issues

WHAT IS FRONT RUNNING?

Front running simply is strategically cutting the line, when an order is executed in the block

chain to inflate the price of those initially trying to execute their order.

It is considered illegal and unethical in the traditional financial markets. However, unlike traditional markets (that are regulated), decentralized exchanges (DEXs) resemble the Wild West, especially when it comes to frontrunning. Unlike stock exchanges where frontrunning is often based on private information, DEXs have become a popular target of frontrunners for a variety of other reasons e.g., transaction confirmation latency (e.g. slippage) and lack of transaction information privacy — which have created large infrastructure vulnerabilities for frontrunners to exploit.

HOW DOES THIS WORK ?

For instance when swapping token on Uniswap, a transaction is generated and sent to public mem pools where it waits for miners to add it to the block. While the transaction is pending anyone who has access to view the a transaction mostly the(miner) place an order base on the order the see pending in the mempool, and if their transaction is first executed before the pending order, knowing that the pending order will have effect on the overall price they make profit from there by paying a higher gas fee. Ethereum has been the primary target of front-running attacks. People trading on Ethereum-based DEXs and Defiprotocols have, therefore, suffered the greatest losses.

Professional traders tend to be more aware of frontrunning than retail traders using mobile wallets. This is because professionals’ trading volume and frequency are much higher, meaning they have more to lose from front-running attacks. That said, bots don’t distinguish between retail traders and professional traders. When the network is congested, less experienced traders (i.e., retail traders) tend to lose more from frontrunning because the prolonged transaction confirmation process not only gives the bots more time to enact their mischief but also makes it harder to reduce the slippage after the attack. Because professional traders often find ways to avoid the bots, less experienced retail traders become even more likely victims of front-running attacks.

HOW CAN THIS ISSUE BE SOLVED USING BLOCKWALLET.

Many dexes such as uniswap and dapp have put heads together to come up with a solution to this problem, some of this solution it as a great disadvantages.

But blockwalket has given it users a good and trusted solution to this problem.

The solution : BlockWallet builds a silent transaction features,😊where network participants and worker nodes are not able to see transactions flowing to the network. In other words, the pool of incoming or unprocessed transactions in blocklket is a private. This prevents malicious actors from profiting at the expense of honest users by watching the mempool.

Blockwallet is helping secure the decentralized web.

Come build and enjoy privacy 🔏!! Reminder!!

Blockwalket has officially been launch users can now access the privacy pool visit our website at blockwallet.io and download the wallet and enjoy the benefits 😊

For more information and update visit our
Website: https://blockwallet.io

Medium : http://blockwallet.medium.com/

LinkedIn :https://www.linkedin.com/company/block-wallet/

GitHub: https://github.com/block-wallet
Twitter :https://twitter.com/GetBlockWallet
Telegram:https://t.me/blockwallet

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