Front running is the transaction that has been made with the knowledge of future transactions. Basically, it’s a strategy used by traders to take advantage of their educated guess about a future transaction that can bring them profits. So, the investors are just buying or selling the crypto, guessing its price would skyrocket in the upcoming days.
Nodes can conduct front running as they have access to significant information on the pending transactions. So, they can manipulate the market. In decentralized exchanges, bots generally do front running. The programmer would create a bot. That bot would access the mempool and look for orders with high slippages and bet on it.
Subscribe to our Newsletter
Get the best updates from the Web3 ecosystem & The Dapp List in your inbox every week 👇