Jito, one of the key validators on the Solana network, has introduced a new block building marketplace called Block Assembly Marketplace (BAM). This project aims to prevent attacks and optimize block building for applications and DeFi protocols.
The Issue of Attacks on Solana
Sandwich attacks or front-running transactions are a significant problem for the Solana network, negatively impacting decentralized exchanges (DEX). Although Solana does not have a mempool, making such attacks more difficult, Jito had previously provided access to transaction data. However, even private pools may not ensure security, as they could still be subjected to front-running.
Jito's Update on Block Building System
Solana has a complex block building system without dedicated MEV builders. Jito, acting as one of the main block optimizers, previously used auctions for favorable transaction placements. With the launch of BAM, the existing auction system is set to be replaced with new hardware nodes, additional validators, and plugins for developers, allowing the introduction of specific transaction-ordering rules. A key feature of BAM will be specialized encryption hardware that will keep transactions encrypted until execution.
Launch of BAM as a Centralized Service
The BAM service will be launched with centralized control and will create an Ecosystem Advisory Committee. Initially, Jito Labs will lead the launch of the first BAM nodes and include validators from the Solana Foundation. 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. The launch of BAM may redistribute block-building revenues among nodes, validators, and application developers.
Jito's initiative to launch the Block Assembly Marketplace may significantly enhance the security and optimization of transactions on the Solana network, offering new opportunities for both developers and users.
