Neo X Completes Audit of Zero-Knowledge DKG Protocol for Anti-MEV Solution

Neo X has announced the successful completion of an audit for its zero-knowledge Distributed Key Generation (DKG) protocol, a key component of its Anti-MEV solution. The audit was conducted by Hacken, a prominent Web3-native security company. Following the audit, Neo X collaborated with Hacken’s experts to refine and optimize the code based on their recommendations. This development marks a significant step towards deploying the Anti-MEV functionality on Neo X’s TestNet and MainNet.

The Anti-MEV solution on Neo X aims to address the issue of Maximal Extractable Value (MEV), a problem in decentralized finance (DeFi) where block producers reorder transactions for profit. MEV has led to billions of dollars being extracted from users annually. Neo X’s approach involves using enveloped transactions, which seal transaction details from block producers until after confirmation, thereby preventing transaction reordering for personal gain.

The DKG protocol is central to Neo X’s Anti-MEV design. It allows validators to collaboratively generate key pairs, with the public key used to encrypt transactions. The private keys are distributed among validators, and a threshold of typically two-thirds is required to decrypt the transaction. This mechanism ensures transaction security, prevents censorship or manipulation by any single validator, and guarantees block finality while avoiding chain reorganizations.

Hacken’s audit identified 15 findings, all of which have been addressed. With these enhancements, Neo X is confident that the code is ready for deployment. The full audit report can be accessed here.

Neo X is a high-performance, EVM-compatible chain that operates in parallel with Neo N3, serving as a bridge between the Neo ecosystem and the broader Ethereum Virtual Machine (EVM) world. The upcoming deployment of the Anti-MEV solution is expected to enhance the security and fairness of the DeFi environment within the Neo ecosystem.

The completion of the audit and subsequent code refinements have set the stage for Neo X to roll out its Anti-MEV solution, first to TestNet and then to MainNet. This initiative is designed to provide a more secure and trustworthy DeFi environment for users and developers within the Neo ecosystem. Further updates are anticipated as Neo X progresses towards full deployment.

For more information, the announcement can be read here.

Why This Matters: Impact, Industry Trends & Expert Insights

Neo X has successfully completed an audit for its zero-knowledge Distributed Key Generation (DKG) protocol, a critical component of its Anti-MEV solution aimed at enhancing security and fairness in DeFi transactions.

A recent CryptoSlate report highlights the trend towards standardization and scalability improvements in zero-knowledge proof protocols. This aligns with Neo X’s development of a zero-knowledge DKG protocol, which is set to bolster privacy and security in the blockchain ecosystem.

As per insights from Neo News Today, Neo X’s protocol is seen as an innovative contribution to enhancing consensus security and privacy. This supports the significance of Neo X’s audit completion as a step forward in deploying its Anti-MEV solution, which is expected to improve transaction integrity and network security.

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