Neo has unveiled its Neo X sidechain, a new EVM-compatible blockchain designed to combat Miner Extractable Value (MEV) attacks and promote widespread adoption of blockchain-based products. MEV, the manipulation of block data by miners or validators for financial gain, poses a significant obstacle to trust and innovation in the blockchain industry.
MEV attacks have caused notable incidents, including the $61 million Curve finance hack and the $1.7 million extraction via a Solana MEV bot. To address these challenges, Neo X integrates innovative features to resist MEV attacks and ensure a secure platform for developers and users alike.
The sidechain introduces the dBFT consensus mechanism, pioneered by Neo, to prevent MEV exploitation at the protocol level. Additionally, it utilizes envelope transactions, a combination of Distributed Key Generation (DKG) and threshold encryption/decryption, to protect transaction information from manipulation. These measures aim to create a fair and secure environment for blockchain transactions.
By prioritizing security and fairness, Neo aims to foster trust and encourage participation in the blockchain industry. The introduction of Neo X represents a significant advancement in addressing MEV-related challenges and promoting a more robust and diverse blockchain ecosystem.