Leading Ethereum cryptocurrency wallet MetaMask is unveiling a new feature this week called Smart Transactions that aims to mitigate the impact of maximum extractable value on users.
An optional feature, Smart Transactions, allows users to submit transactions to a “virtual memory pool” before they are officially recorded on the blockchain. Developed by ConsenSys, the developer of MetaMask, this virtual mempool defends specific MEV strategies by simulating transactions behind the scenes to guarantee lower fees to users.
MEV represents the additional profit that blockchain operators can extract by manipulating transactions before they are processed, similar to front-running execution in traditional financial markets. MEV significantly affects the functioning of Ethereum, inflating costs, slowing down transactions, and sometimes causing transaction failures.
Jason Linehan, Group Director of Special Mechanisms at ConsenSys, highlighted the widespread waste of funds due to MEV-related issues, highlighting the urgent need for solutions to improve user experience.
MetaMask’s virtual mempool initiative mirrors private mempools to enhance transaction privacy and protect against MEV. This is the platform’s first step in an ambitious roadmap that aims to revolutionize how MetaMask’s transactions are routed on Ethereum.
Linehan made it clear that MetaMask’s virtual mempool is different from traditional private mempools and is essential to addressing Ethereum’s significant hidden costs.
Smart transactions operate leveraging Ethereum’s existing infrastructure, and MetaMask’s virtual mempool financially penalizes builders and searchers if they deviate from the quoted transaction price. Linehan noted that most of Ethereum’s current operators have already opted for MetaMask’s virtual mempool program.
In addition to ensuring better pricing for users, Smart Transactions simplifies transaction tracking within MetaMask, eliminating the need for users to navigate to external block explorer websites.
Linehan described smart transactions as a fundamental step toward MetaMask’s broader goals and envisioned future developments such as intent-based architecture.
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