Author: Peter Todd 2014-12-21 07:01:54
Published on: 2014-12-21T07:01:54+00:00
In a discussion on the Bitcoin development mailing list, Mark Friedenbach expressed concerns over the security of Freimarkets, a decentralized exchange. Friedenbach pointed out that Freimarkets doesn't require proof of publication of bids or asks and front-running is embraced as the mechanism for generating miner fees to pay for the service. He also mentioned that proof-of-publication is essential in detecting front-running robustly within certain parameters. In response, Peter Todd suggested that anti-front-running protection might be the only thing people would use a decentralized system for. Todd's paper from Feb 9th, 2014, titled "Decentralized digital asset exchange with honest pricing and market depth," discusses the importance of protecting against front-running in finance.
Updated on: 2023-06-09T14:59:55.825018+00:00