Maximal Extractable Value (MEV) has become a significant topic in the crypto industry. In this article, we will explore what MEV is and how the FAIR blockchain platform intends to combat it.
What is MEV?
Maximal Extractable Value (MEV) refers to the excess profits that blockchain insiders (miners, validators, or bots) can capture by manipulating the ordering, inclusion, or censorship of transactions in a block. This manipulation can lead to significant losses for users, who have suffered nearly $2 billion in losses due to MEV since 2020.
FAIR Overview: A Blockchain for Fairness
FAIR is a next-generation blockchain built to eliminate MEV. Developed by the SKALE Labs team, this platform aims to embed fairness and privacy into the base protocol without sacrificing performance. FAIR is the first Layer-1 chain to implement the Blockchain Integrated Threshold Encryption (BITE) protocol.
How FAIR Protects Against MEV?
The BITE protocol ensures that transaction details are encrypted until consensus is reached, making attacks like front-running impossible. This means users can carry out transactions without fear of hidden losses in the form of MEV. This technology greatly enhances user trust and creates a fair trading environment.
FAIR represents a significant solution to the MEV problem, providing users safety, privacy, and fairness. The degree of acceptance and application of this technology in DeFi could substantially change the cryptocurrency market.
