Private Transactions

Private Transactions

Typically, transactions are broadcast to the mempool where they remain pending until miners pick them and add to the block. Private transactions however, are only visible to the pool and are not broadcast to other nodes (pay more for faster transactions).

Examples include 1inch Exchange's Stealth Transactions, Taichi Network and BloXroute.

Taichi Network allows users to send private transactions directly to Sparkpool, bypassing the public mempool.

Private Transactions offered by Taichi Network

bloXroute Labs has a wide range of offerings and their core competency is low global latency for DeFi (8% of blocks mined within 1 sec).

For the other side of the coin, here is bloXroute Labs' take on why private mempools are not necessarily bad¹:

1. Front-runners don't need these services to outpace regular users, who are slower by seconds. They need it to outpace one another, where improving speed 0.8->0.15 sec matters.

2. When a transaction is privately sent to pools other frontrunners can't attempt to front-run it. This helps avoid fierce escalation of fees.

Link: https://docs.bloxroute.com/apis/frontrunning-protection ↩¹