Solana News Today: Jito Proposes Block Assembly Marketplace to Enhance Solana Security

Jito, a key validator in the Solana ecosystem, has proposed a new block-building mechanism aimed at enhancing the network's security and efficiency. The proposed system, known as the Block Assembly Marketplace (BAM), is designed to create private pools with optimized block building and to mitigate the risks associated with sandwich attacks. Sandwich attacks, which involve front-running transactions, have been a significant issue for Solana, particularly affecting decentralized exchange (DEX) activity.

Solana's current block-building system is complex and lacks dedicated MEV builders. Jito, as one of the main block optimizers, has been working through auctions to secure favorable transaction placements. However, even private pools may not be secure from front-running transactions. To address these challenges, Jito is upgrading its auction system and replacing it with BAM. This new approach includes a layer of hardware nodes, additional validators, and plugins to connect developers, allowing for the creation of apps with specific transaction-ordering rules.

One of the key features of BAM is the use of specialized encryption hardware, which keeps transactions encrypted until execution and verifies all transfers in a trustless manner. This encryption ensures that transactions are not exposed to malicious actors and MEV bots, addressing concerns about data exposure. BAM will enable developers to create products that can hide, cancel, or change transactions until the very last moment, optimizing use cases such as perpetual swaps, dark pools for trading, and on-chain games with limited front-running.

Jito Labs will initially launch BAM as a centralized service, creating an Ecosystem Advisory Committee to oversee its development. The service will recruit validators, including the Solana Foundation, and Jito Labs will run the first BAM nodes until the network is stabilized. Third-party validators, such as Triton One, SOL Strategies, Figment, and Helius, will later join the network. The BAM program will also recruit an initial cohort of applications to test the plugins and the new approach to offering encrypted transactions, verifiable by dedicated nodes and validators.

Despite recent reports of fewer MEV attacks on Solana, Jito remains the main transaction relayer, generating significant daily fees. The launch of BAM is expected to spread the revenues from block-building between nodes, validators, and app developers, further decentralizing the network's ecosystem. This upgrade is a significant step towards enhancing the Solana network's capabilities, making it more secure, efficient, and attractive to developers and users.