SKALE Labs, the developer behind the Layer-1 blockchain network SKALE, has launched the BITE Protocol, a cutting-edge solution aimed at eradicating Maximal Extractable Value (MEV), a pervasive issue in the decentralized finance (DeFi) sector.
MEV, which occurs when validators or miners manipulate transaction order to extract profits, has cost blockchain users an estimated $1.8 billion annually. In response, SKALE’s BITE Protocol—short for Blockchain Integrated Threshold Encryption—provides a consensus-level encryption mechanism that prevents MEV by concealing transaction details until a block is finalized.
According to a press release shared with Cryptonews, the protocol’s encryption mechanism ensures that transactions remain private while in the mempool and are only decrypted after block finalization. This prevents transaction front-running, sandwich attacks, and other exploitative practices commonly associated with MEV.
“BITE is a game-changer for the DeFi landscape,” said Jack O’Holleran, CEO of SKALE Labs. “By embedding encryption at the consensus level, we are effectively eliminating the unfair advantages that validators have exploited for years.”
The protocol is particularly beneficial for decentralized exchanges (DEXs), NFT marketplaces, prediction markets, and lending protocols, where transaction fairness and transparency are paramount.
The announcement follows a record-breaking month for SKALE, which processed over 100 million transactions in April, highlighting the network’s growing adoption and scalability.
