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General Discussion / Front running Decentralized Exchanges
« on: June 13, 2015, 04:14:37 pm »
How front running is handled in the 2.0? I happened to stumble upon this blog post:
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Bitshare’s Daniel Larimer has a very informative article called “How Bitshares prevents frontrunning” , which describes the problem better than I can, but unfortunately makes a terrible conclusion. The conclusion of the article is that they can’t prevent frontrunning, so you should just assume that you are being front run. This conclusions seems to be missing the whole entire point of having a limit order book. If you cannot provide a fair and orderly execution, you should just provide an auction system where orders are not automatically executed and users can choose the orders they execute against. Using a limit order book gives a dangerous illusion that the system is fair, when it is inherently rigged in favor of the miners.