Blockchain News
Neo Unveils EVM-Compatible Sidechain to Prevent MEV Attacks and Boost DeFi
Neo, a blockchain platform that aims to create a smart economy, has announced the launch of a new sidechain called Neo N3 EVM. The sidechain is compatible with Ethereum’s EVM standard, which means that developers can easily deploy existing Ethereum smart contracts on Neo without any modifications.
#Neo Founder @dahongfei, announcing #Neo’s New Chapter: an #MEVFree, #EVM compatible sidechain, to ensure security, privacy, and a smooth experience in the increasingly complex #DeFi landscape.
The sidechain is under development. The testnet is planned to be launched at the end… pic.twitter.com/EO9Ck52qGt
— Neo Smart Economy (@Neo_Blockchain) October 27, 2023
The sidechain also claims to be resistant to MEV (miner extractable value) attacks, which are a type of front-running that exploits the ordering of transactions on a blockchain. MEV attacks have become a serious problem for Ethereum and other blockchains, especially in the DeFi (decentralized finance) sector, where users can lose money or opportunities due to malicious miners or bots.
According to Flashbots, a research and development organization that studies MEV, the total amount of MEV extracted on Ethereum reached over $1.4 billion in September 2023.
The New Development from Neo Aims to Enhance Security
Neo N3 EVM aims to prevent MEV attacks by using a consensus mechanism called dBFT (delegated Byzantine Fault Tolerance), which ensures that transactions are finalized in a deterministic order and cannot be reordered or censored by validators.
Neo N3 EVM also leverages Neo’s cross-chain interoperability protocol, Poly Network, to enable seamless asset transfers between Neo and other blockchains, such as Ethereum, Binance Smart Chain, and Polygon.
To bolster privacy and deter potential exploitation, users have the option to employ proxy contracts, which serve to mask their identities. When used in conjunction with Neo’s dBFT consensus mechanism, these strategies strive to foster a trading environment that is both secure and equitable.
The new development is part of Neo’s vision to create a smart economy that integrates digital assets, digital identities, and smart contracts. Neo hopes that its new sidechain will attract more developers and users to its ecosystem and foster the growth of DeFi applications on its platform.
The company also plans to launch more sidechains in the future that will support different programming languages and standards.