I think (1) is a bit harsh relating to the terminology. Technically front running is based on plainly “non-public” information. The term has been generalised and expanded to include crypto transactions which are slightly more obfuscated from the average user who doesn’t sit and watch the mempool. I think the term is completely appropriate.
I respectfully don't think it is too harsh. Every legal definition I know of frontrunning requires a client relationship. Even in the case of "non-public" information, frontrunning refers to trading ahead of your client based on non-public information related to the clients securities. Trading on non-public information when a client is not involved is referred to as insider trading.
Also in this context, the reason that these sandwich attacks can happen is because all the information is public. The adversary can see your transaction waiting to be validated, and pay the miner a higher gas fee to be executed first.
It's not appropriate, because it's a poor generalization to begin with. People just see "frontrunning" and have a vague sense it's fundamentally illegitimate because of vague connections to the illegal practice, and yell things that make no sense on wsb and the like.
The usage is popularized because it makes sensationalist headlines and forum headers, that the "generalized usage" was either misguided or intended to confuse, which correlates poorly with accurately conveying the meaning of word or capturing the details of the blockchain phenomenon.
Front-running means a very specific thing: a broker/dealer trading ahead of a client order they are supposed to honestly facilitate. It is rightly illegal.
Trading fast based on "slightly obfuscated" public domain information is categorically not any kind of front-running. It is as far as I can see just a pure execution arbitrage.
zydex|3 years ago
finexplained|3 years ago
Also in this context, the reason that these sandwich attacks can happen is because all the information is public. The adversary can see your transaction waiting to be validated, and pay the miner a higher gas fee to be executed first.
dchftcs|3 years ago
The usage is popularized because it makes sensationalist headlines and forum headers, that the "generalized usage" was either misguided or intended to confuse, which correlates poorly with accurately conveying the meaning of word or capturing the details of the blockchain phenomenon.
seanhunter|3 years ago
Trading fast based on "slightly obfuscated" public domain information is categorically not any kind of front-running. It is as far as I can see just a pure execution arbitrage.