SKALE Labs has launched the BITE Protocol (Blockchain Integrated Threshold Encryption), a consensus-level solution aimed at eradicating Maximal Extractable Value (MEV) from blockchain transactions.
MEV, which refers to the profits that validators and miners can extract by reordering transactions within a block, has been a persistent issue in blockchain networks, leading to over $1.8 billion in losses since 2020. Common MEV tactics include front-running, sandwich attacks, and time-bandit attacks, all of which compromise transaction fairness and user trust.
SKALE’s BITE Protocol addresses this challenge by integrating threshold encryption directly into the blockchain’s consensus layer. This approach ensures that transaction contents remain encrypted until after a block is finalized, preventing any party, including validators, from accessing transaction details prematurely. By doing so, BITE effectively neutralizes the opportunity for MEV exploitation, promoting a fairer and more secure transaction environment.
“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. “BITE Protocol encrypts consensus and completely removes MEV from blockchain, finally putting an end to front-running, sandwich attacks, time bandit attacks, and other methods of taking value from end users.”
“Rather than applying band-aid solutions to the MEV problem, BITE addresses it at its root through cryptographic guarantees in the consensus layer itself,” Jack mentioned.
The introduction of BITE is crucial as the blockchain industry seeks to attract more traditional financial institutions, which demand transaction fairness akin to conventional markets. By eliminating MEV at the consensus level, BITE aligns blockchain transactions more closely with the expectations of these institutions. This can accelerate blockchain adoption in traditional finance sectors.
Beyond finance, BITE’s implications extend to decentralized exchanges, NFT marketplaces, lending protocols, on-chain games, prediction markets, and real-world asset tokenization platforms. In these areas, transaction fairness and privacy are crucial, and BITE’s encryption mechanism provides a robust solution to longstanding vulnerabilities.
SKALE Labs, established in 2017 by Jack O’Holleran and Stan Kladko, PhD, has been at the forefront of blockchain scalability and user experience. The SKALE Network is known for its gas-free, fast, and Ethereum Virtual Machine (EVM)-compatible chains, making it an attractive platform for developers building decentralized applications. As of 2025, the network boasts over 55 million unique active wallets and has saved users more than $11 billion in gas fees.
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Image Credits: SKALE Labs, Canva