This is an interesting topic@MiaZmy I’ll explain some things I understood on this topic
The idea that Ethereum is an autonomous blockchain - based platform which may be utilized to develop dapps is something people could definitely connect to. Specifically because of this, it is quite well-liked.
Ethereum personal trades seem to be safe trades that take place on a public blockchain and cryptographic signature of the network. They must therefore be operationally flexible.
Therefore a further intriguing aspect would be because since the interactions are hidden from view, they cannot be tracked and have no impact on the value of ethereum coins.
Nice summary, @MiaZmy , it was nice reading your summary, I think I see the reason why the author proposed private transactions, the reason was to help protect transactions from being attacked. To help a future reader to appreciate this topic, I think I have to define what private transactions means in this context. A private transaction is a special transaction that can be sent directly to miners, bypassing the public mempool by doing so, such transactions remain private (i.e., only present in the target miner’s mempool) until they are posted by the target miner, and cannot be monitored by others. As a result, attackers cannot see these transactions in their mempool, thus thwarting the attacks. I further noticed in this paper that 2.6% private transactions senders earned more than ten ETH as profits via MEV Bots. Attackers have already utilized private transactions to launch attacks, in these attacks, the attackers paid a large amount to the miner as a bribe to get their transactions executed. According to the evaluation, the miner earned as high as 700 ETH for mining a single private transaction. This can lead to serious consensus security issues, such as the undercutting attacks. I think private transactions are not always private. Why? This is because the author observed that by running two Ethereum nodes in two continents for nine days, shows 4.3% private transactions in our mempool, which means that they are actually not private. I think users should proceed with caution when sending private transactions.
Finally, there is private transaction leakage at around 4.3% percentage. The leaked private transactions against their intentions and may harm the profits of their users.
Hello @MiaZmy , nice work, I see that Defi Platforms like Ethereum is becoming so popular, this could be the reason large amount of money is involved in the system, therefore, the number of attacks to steal money from them is also arising. Since all transactions in Ethereum need to be broadcasted before mining, every transaction will need to stay in the public mempool for some time. Some attackers have exploited this fact and launched attacks (e.g., frontrunning ) targeting pending transactions
in mempool. In frontrunning attacks, an attacker observes a victim transaction in the mempool and launches an attack transaction with certain features like higher gasprice, so that the attack transaction will be mined before the victim
transaction, thus making profits. Honestly this is very bad. But I am happy that private transaction has been proposed to solve this problems.
I think the paper provides a good understanding
private transactions and their impacts on the Ethereum ecosystem, morealso, many private transactions are used for MEV opportunities by MEV searchers.
It is clear that with the appearance of private transaction, users pay or bribe miners by directly transferring money to them. Thus, making miners willing to mine such transactions.
but my question is this, In private transaction, do you think is proper for users to pay the
transaction fee even though their transactions failed or do you think if there could be an occasion when users can pay nothing for the transactions?
@MiaZmy you did a great job in this very summary andyour research questiongot me thinking.
I would like to think that there are some potential security impacts to consider when using private transactions. One potential issue is that private transactions rely on the assumption that the parties involved in the transaction are trustworthy and will not reveal the hidden information to unauthorized parties. If this assumption is not met, the privacy provided by private transactions may be compromised.
Another potential security impact of private transactions is that they may be vulnerable to certain types of attacks, such as selective disclosure attacks or rewind attacks. In a selective disclosure attack, an attacker with access to the private inputs of a transaction could potentially reveal the hidden information to unauthorized parties. In a rewind attack, an attacker could potentially alter the transaction history on the blockchain by rewinding the chain to a previous state and revealing the hidden information in the process.
Conclusively, while private transactions can provide an additional layer of privacy and security for users, it is important to carefully consider the potential security impacts and choose a solution that meets the specific needs and requirements of your use case.
There are measures in place to address the issue of miners executing private transactions on Ethereum and other blockchain platforms. For example, Ethereum has implemented cryptographic techniques such as zero-knowledge proofs and ring signatures to enable private transactions that are secure and protect user privacy. Additionally, Ethereum has implemented a number of security measures and protocols to prevent attacks and protect the integrity of the network. These measures include proof-of-work consensus algorithms, which require miners to perform complex mathematical calculations to validate transactions, and smart contract security best practices, which outline guidelines for developing secure smart contracts.
That being said, it is important to note that no system is completely foolproof and there is always a risk of vulnerabilities or attacks. Users of Ethereum and other blockchain platforms should be aware of this risk and take steps to protect themselves and their assets. This may include using additional security measures, such as multi-factor authentication or hardware wallets, and carefully evaluating the reputation and security practices of any service or platform they use for private transactions. It is also important for Ethereum and other blockchain platforms to continuously work to address and mitigate potential vulnerabilities and threats to user privacy and security.