In a strategic move to combat Maximal Extractable Value (MEV) exploitation, SKALE Labs has rolled out its BITE Protocol, a consensus-level encryption solution designed to safeguard blockchain transactions from front-running and other malicious practices.

MEV, estimated to cost DeFi users over $1.8 billion annually, arises when network validators or miners manipulate transaction order for personal gain. The BITE Protocol, which stands for Blockchain Integrated Threshold Encryption, encrypts transactions before they enter the mempool and decrypts them only after block finalization, effectively neutralizing MEV opportunities.

The launch comes on the heels of a record month for the SKALE network, which exceeded 100 million transactions in April, reflecting rising demand for more secure, MEV-resistant blockchain infrastructure.

The BITE Protocol will target key sectors, including NFT marketplaces, prediction markets, on-chain gaming, and decentralized lending, where transaction transparency and fairness are critical to maintaining user trust.

“Our objective with BITE is to redefine transaction security across decentralized networks,” said Jack O’Holleran, CEO of SKALE Labs. “We are committed to ensuring that blockchain transactions are not only secure but also free from malicious manipulation.”

The protocol’s launch also aligns with SKALE’s broader vision to attract institutional assets and real-world assets (RWAs) to the blockchain ecosystem, positioning BITE as a crucial layer for secure, large-scale financial transactions.