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That’s what makes institutional DeFi a non-starter.” Private reads hide which customers and apps are querying, similar to balances and positions. The privateness dialog in crypto has finally escaped the “anonymous money” framing that dominated the final cycle. That’s a scaling and market-fairness downside rooted in market structure. On some Ethereum L2s, bots now burn over half the gasoline simply searching for MEV, they usually don’t pay proportionally for it. Front-running in blockchain occurs when somebody exploits the visibility of pending transactions to execute similar transactions ahead of them.
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It Is tons of of hundreds of thousands per yr being extracted from customers because their transaction intent is seen before execution. Write privacy (front-running, sandwich attacks on institutional flows) is actively destroying worth at present. Over 112,000 ETH, roughly $400 million at current prices, has been extracted from customers by sequencers and MEV bots feeding on the readable state, according to TEN’s estimates.
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