Research Summary: An Empirical Study on Ethereum Private Transactions and the Security Implications

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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.

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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.

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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?

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