Protective Measures

SAX actively seeks to protect its users' best interest.

Built-in Front-running Protections

A commit-reveal scheme is used as an effective technique to enhance security and prevent a range of malicious activities, including front-running and other types of attacks.

The essence of this scheme is a two-phase process: in the 'commit' phase, a user sends a hashed version of their transaction to the network. This hash acts like a sealed envelope, concealing the actual details of the transaction (such as the amount or the recipient) but proving that the transaction exists in a specific form. The network acknowledges this commitment without knowing the transaction's specifics. Later, in the 'reveal' phase, the user discloses the actual details of the transaction, which are then verified against the initially committed hash. If the details match the hash, the transaction is executed. This process ensures that while a transaction is in the queue, malicious actors cannot view its details to front-run or manipulate it, as they can only see the hash, not the transaction itself.

Commit-reveal schemes address a significant vulnerability: the transparency of pending transactions. In typical blockchain networks, transactions in the mempool (memory pool) are visible to everyone, including miners, before they are confirmed. This visibility can lead to unethical practices like front-running, where a miner or user with access to pending transactions executes their transaction first based on the information gleaned from the queue, potentially at the expense of the original transaction's initiator.

By using a commit-reveal scheme, the details of a transaction are kept hidden until the point of execution, preventing others from exploiting this information. This not only enhances the security and integrity of transactions but also fosters a more equitable and trustless environment in the blockchain ecosystem. As a result, commit-reveal schemes are increasingly seen as a crucial tool in mitigating a range of attack vectors and maintaining the fundamental principles of decentralization and security in the cryptocurrency world.