SKALE Network’s new BITE Protocol tackles MEV and privacy issues by encrypting transactions at the consensus layer — before they hit the mempool.
As blockchain adoption grows, so do its vulnerabilities. A key threat is Maximal Extractable Value (MEV) — where validators manipulate transaction order to profit, costing users nearly $2 billion since 2020. Combined with weak on-chain privacy, MEV has become a core challenge for decentralized systems.
Enter BITE Protocol (Blockchain Integrated Threshold Encryption) from SKALE Network — a first-of-its-kind solution that addresses both problems directly within the blockchain’s core consensus process.
A Native Fix for MEV
Unlike private mempools or centralized relays that require opt-in, BITE encrypts transactions by default, before they ever enter the mempool.
Transactions are sealed on the user’s device, validated blindly by the network, and only decrypted after consensus is reached — eliminating opportunities for front-running or sandwich attacks.
How BITE Works
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Encrypt: Transactions are encrypted before submission.
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Validate: Validators sign without viewing the contents.
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Finalize: Data is decrypted post-consensus and executed.
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Post-Finality: Data remains encrypted in explorers, visible only through BITE-specific calls.
This process ensures fairness and privacy — all without disrupting user behavior.
Use Cases and Roadmap
BITE will launch in four phases:
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Phase 1: Eliminates MEV in DEXs, auctions, gaming, and prediction markets.
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Phase 2: Enables smart contracts to process encrypted inputs like sealed bids or time-locks.
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Phase 3: Adds selective re-encryption for private DAOs, subscriptions, and social apps.
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Phase 4: Powers confidential DeFi, payroll, and voting via homomorphic encryption.
Rethinking Trust in Web3
BITE doesn’t just reduce risk — it rewrites the rules of blockchain architecture. With native, automatic encryption at the protocol level, it raises the bar for fairness, privacy, and decentralization.
As SKALE grows its ecosystem of gaming, AI, and financial dApps, BITE Protocol could become a cornerstone of secure and scalable Web3 adoption.
