top | item 31300552

(no title)

finexplained | 3 years ago

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.

discuss

order

Retric|3 years ago

People submitting crypto transactions to miners are their clients, as in the miners get paid when one of their transactions occur.

Index front running is not illegal and is based on public information. So, this may be a form of legal front running.

legutierr|3 years ago

There is no way that every transaction signer whose transaction is added to a block should be considered a client of the miner of that block.

Most likely none of the transaction signers qualify as clients of the miner. Transactions are transmitted over the network anonymously via a gossip protocol, and hundreds or thousands of miners have the chance to include (or not include) any transaction in a block. Transactions are selected for inclusion in a block effectively randomly, through an entirely mechanical process, and no relationship is established or maintained between the miner and any transaction sender.

In order to assert that a transaction signer is a client of the miner that builds the block that includes the transaction, you would have to redefine what the word “client” means.

JumpCrisscross|3 years ago

> submitting crypto transactions to miners are their clients

This is a novel construct. It may be wise. But it’s not the status quo.

finexplained|3 years ago

This allegation of frontrunning references another trading participant, not the miners. Also, arguably, and certainly not legally.

syzygyhack|3 years ago

Not sure why you are so hung up on the semantics. Obviously the "legal definition" of frontrunning is different from the crypto native definition. What matters is that it adeptly captures the nature of these actions.

finexplained|3 years ago

Um, because I think words have meaning, and I think accusing people of actions that have legal implications when they are not in fact doing those things is bad.