We have previuosly established what a mempool is, a list of pending transactions, specific to each blockchain node, where new created transaction wait to be verified, included in a transaction block and executed on the blockchain.
The transactions with lower gas prices spend more time in a mempool and can be overwritten with replacement transactions. One of the most uses of the Mempool is to get pending transactions in real time. Here’s why monitoring the mempool can be important:
- Detect large pending trades before they execute — MEV, arbitrage, and frontrunning protection.
- Optimize transactions by analyzing current gas prices and adjusting fees to avoid delays or drops.
- Monitor security risks and identify potential attacks by watching for suspicious transactions targeting their contracts.
A private mempool sends the transactions to a smaller number of nodes, that promise to keep transaction data private and don't intervene in transaction's ordering.
Advantages of privates mempools are better privacy, lower MEV risks and better control in transactions ordering.
The trade-off to these benefits can be lower execution times due to fewer nodes, but generally considered a small inconvenient considering the privacy benefits.
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