Decentralized commit-reveal scheme to defend against front-running attacks on Decentralized EXchanges
Nakhoon Choi, Heeyoul Kim · 2024
In this paper, we focus on the security issues of decentralized exchanges (DEXs), specifically on front-running attacks. Front-running attacks, which exploit the transparency of blockchain and its transaction processing mechanisms, pose a significant threat by undermining the reliability and efficiency of DEXs and eroding user trust. To solve this problem, this paper proposes a new decentralized commit-reveal scheme that overcomes the limitations of the existing commit-reveal scheme and enhances user experience and the spirit of decentralization. This scheme was developed through Ethereuem’s Uniswap, and guarantees safe transactions through the proposed relay router and deputy reveal mechanism and effectively blocks frontrunning attacks. We demonstrate the security and efficiency of the proposed scheme through scenario-based verification and identify a new solution to front-running attacks in the DEX environment.