In a groundbreaking move aimed at eradicating Maximal Extractable Value (MEV), SKALE Labs has introduced the BITE Protocol, marking the industry’s first consensus-level solution designed to combat MEV on blockchain networks.
MEV, which refers to the potential profit miners or validators can extract by reordering, including, or excluding transactions in a block, has been a persistent issue in the blockchain space, with losses estimated at $1.8 billion annually. SKALE’s BITE Protocol—short for Blockchain Integrated Threshold Encryption—addresses this challenge by encrypting transaction data before it enters the mempool, and decrypting it only after the block has been finalized.
According to the press release shared with Cryptonews, the BITE Protocol provides a solution that ensures transaction fairness and data privacy, making it particularly beneficial for decentralized exchanges (DEXs), NFT marketplaces, lending protocols, on-chain games, prediction markets, and real-world asset (RWA) tokenization platforms.
SKALE Network Surpasses 100 Million Monthly Transactions
The introduction of BITE follows a period of remarkable growth for SKALE. In April, the network processed over 100 million transactions in a single month, a significant milestone that underscores the increasing adoption of its Layer-1 blockchain infrastructure.
The surge in transaction volume is attributed to the integration of BITE Protocol, which not only mitigates MEV but also enhances overall transaction efficiency and security.
“MEV has long been a hidden tax on DeFi users, undermining the principles of decentralization and fairness,” said Jack O’Holleran, CEO of SKALE Labs. “With BITE, we are taking a proactive stance to ensure that blockchain networks remain secure, transparent, and equitable for all participants.”
Real-World Applications and Industry Impact
The implications of the BITE Protocol extend beyond just MEV prevention. By ensuring transaction privacy and order integrity, the protocol is positioned to attract a wider range of traditional financial assets and RWAs to blockchain networks, fostering greater institutional adoption.
Additionally, BITE is expected to significantly impact the NFT and gaming sectors, where transaction front-running has been a major concern. The protocol’s encryption and decryption mechanisms provide a level playing field for users and developers, reducing the likelihood of exploitative practices.
With the successful launch of BITE, SKALE Labs is positioning itself as a leader in blockchain security infrastructure, setting a new standard for mitigating MEV risks while promoting transaction transparency and data privacy across decentralized ecosystems.
