SKALE Labs Launches BITE Protocol to Eliminate MEV and Redefine Blockchain Fairness
Staff Writer • 2025-05-08
With over $1.8 billion lost to MEV, SKALE’s cryptographic breakthrough aims to make front-running attacks a thing of the past. San Francisco — In a move poised to reshape blockchain infrastructure from its core, SKALE Labs has launched the BITE Protocol—short for “Blockchain Integrated Threshold Encryption.” Unveiled on May 8, 2025, the protocol introduces a groundbreaking cryptographic solution designed to eliminate Maximal Extractable Value (MEV), a pervasive issue that has cost users billions and eroded trust in decentralized ecosystems. Unlike previous surface-level attempts to mitigate MEV, BITE integrates threshold encryption directly into the consensus layer. This means transactions are encrypted before reaching the mempool and are only decrypted after block finalization, ensuring validators—and other actors—cannot manipulate transaction order or visibility. “BITE Protocol represents a watershed moment for blockchain technology, which could result in making current L1 blockchain technology obsolete,” said Jack O’Holleran, CEO and Co-Founder of SKALE Labs. “Rather than applying band-aid solutions, BITE addresses MEV at its root through cryptographic guarantees in the consensus layer itself.” The implications are far-reaching. From sandwich attacks on decentralized exchanges to front-running in NFT marketplaces and time-bandit exploits in lending protocols, MEV has long been a systemic flaw in blockchain architecture. By eliminating early access to transaction content, BITE levels the playing field for all users—retail and institutional alike—aligning decentralized finance more closely with the fairness expected in traditional capital markets. SKALE’s latest innovation arrives at a time when traditional institutions are increasingly eyeing blockchain. But concerns over transaction manipulation and security remain a major deterrent. With BITE, SKALE offers a system that could bring institutional-grade transparency and fairness to everything from RWA tokenization to prediction markets and on-chain gaming. As SKALE’s invisible gas-free Layer 1 continues to scale with over 55 million active wallets and $11 billion saved in gas fees, the addition of BITE Protocol underscores its mission: delivering infrastructure that is fast, fair, and built for mass adoption. The age of MEV dominance may finally be over. And SKALE wants to be the reason why.
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