🟨Types of Transactions

Public Transactions

Public transactions are standard transactions, which after being signed by the sender, are pooled in the mempool. The transaction information such as the sender, recipient, token amount, and fees is publicly visible and awaits to be mined. If the signature is valid, the sender has sufficient funds and the nonce is correct, miners will include it in a block.

Private Transactions

Private transactions are a specific type of transaction that bypasses the public mempool and are directly sent to miners that add the next block. By sending transactions directly to miners or validators, private transactions remain private until they are added to the blockchain, minimizing the risk of being attacked by malicious entities and protecting them from being front-run.

How Do Private Transactions Prevent Frontrunning?

Private transactions prevent frontrunning by hiding transaction details, such as gas, traded tokens and volume from MEV bots. Therefore, without knowing the value of a trade or the gas required to frontrun the transaction, MEV bots will not be financially incentivized to target a private transaction of an unknown size because there is no way to undertake a risk/reward assessment.