SKALE Labs Introduces BITE Protocol to Eliminate MEV, Achieves 100 Million Transactions in April
1min read SKALE Labs, the team behind the Layer-1 blockchain network SKALE, has introduced its BITE Protocol, described as the industry’s first consensus-level solution aimed at eliminating Maximal/Miner Extractable Value (MEV).
BITE, which stands for ‘Blockchain Integrated Threshold Encryption’, works by preventing anyone from accessing transaction contents before a block is finalized. The protocol encrypts transactions before they enter the mempool and decrypts them after block finalization. This approach is designed to benefit various decentralized applications, including decentralized exchanges, non-fungible token (NFT) marketplaces, lending protocols, on-chain games, prediction markets, and real-world asset (RWA) tokenization platforms. The SKALE team emphasizes that transaction fairness and privacy are crucial for integrating traditional assets onto blockchain networks.
MEV refers to the maximum value that miners, validators, and sequencers can extract from transactions awaiting confirmation by rearranging and reordering them. This issue has been a significant concern in the blockchain world, with MEV extraction responsible for over $1.8 billion since 2020. The BITE Protocol addresses this problem by integrating threshold encryption directly into the consensus layer, creating a level playing field for all blockchain participants through enhanced privacy and fairness. This approach aligns blockchain transactions with traditional finance transactions, eliminating front-running tactics that have been a persistent issue in the industry.
Ask Aime: What's the impact of the BITE Protocol's introduction on the blockchain industry?
The BITE protocol aims to transform the blockchain space from one where privileged actors can exploit ordinary users to one where everyone operates with the same information at the same time. This shift brings blockchain closer to the fairness expected in traditional financial markets while maintaining its decentralized nature.
In addition to the launch of the BITE Protocol, the SKALE network achieved a significant milestone in April by surpassing 100 million transactions in a one-month period for the first time. This record highlights SKALE’s ability to support high-throughput applications at zero gas cost. April also saw the launch of the new Block Explorer 2.2.0 on all SKALE Chains, which enhanced ui, token and contract visibility, and chain navigation. Three new titles—Cropbytes, For Loot and Glory, and GoArt Worlds—joined the SKALE GameFi ecosystem in April, all with zero gas fees.
Despite uncertain market conditions and a drop in market participants, SKALE’s onchain metrics increased in the first quarter. The network generated nearly 250 million transactions and 9.7 million unique active wallets, representing a 46% and 33% quarter-over-quarter increase, respectively. SKALE Labs CEO and co-founder Jack O’Holleran described the BITE Protocol as a watershed moment for blockchain technology, suggesting it could make current L1 blockchain technology obsolete. He argued that BITE Protocol addresses the MEV problem at its root through cryptographic guarantees in the consensus layer itself, rather than applying temporary solutions.
