According to a report by CoinDesk, MetaMask, the most popular cryptocurrency wallet on Ethereum, has launched a new feature this week aimed at helping users avoid Maximum Extractable Value (MEV).
The optional new feature, called “Smart Transactions,” will allow users to submit their transactions to a “virtual transaction pool” before they are officially included on the chain. According to ConsenSys, the development company behind MetaMask, this virtual transaction pool will prevent certain types of MEV strategies and help users achieve lower transaction fees through simulated transactions.
When users want to transact on a blockchain like Ethereum, they typically send their transaction data to a public waiting area called a public transaction pool, which is filled with various bots and traders. Builders and searchers on the Ethereum network work together to assemble these transactions into blocks, which are eventually recorded on the blockchain. However, during this process, there is a phenomenon called Maximum Extractable Value (MEV).
MEV refers to the additional profit that blockchain operators can make by previewing or reordering transactions from users, similar to behind-the-scenes trading or front-running in traditional financial markets. MEV has many negative impacts on Ethereum, such as increasing user costs, slowing down transaction speeds, and even causing transaction failures under certain network conditions.
MetaMask aims to address this issue through an innovative “virtual transaction pool.” This virtual transaction pool also involves builders and searchers, but unlike traditional private transaction pools, if they do not complete transactions according to the prices set by MetaMask, they will face economic penalties.
MetaMask’s virtual transaction pool is fundamentally different from traditional private transaction pools due to its large network scale, transparent operation, and novel incentive system. According to Jason Linehan, the Director of Special Mechanism Group at ConsenSys, approximately 95% of these operators have already joined MetaMask’s virtual transaction pool program, which will be gradually rolled out this week. Linehan also pointed out that the “Smart Transactions” feature allows users to track their transactions within MetaMask itself. Typically, users would need to visit external websites like Etherscan to view this information. He believes this is an important step for MetaMask to achieve its broader vision.
Linehan stated in an interview:
MetaMask’s solution (its virtual transaction pool) is somewhat similar to private transaction pools, which are becoming increasingly popular in the Ethereum ecosystem as they effectively ensure transaction privacy and prevent MEV. This feature is the first step in MetaMask’s roadmap, which aims to fundamentally change how MetaMask routes transactions to Ethereum behind the scenes.
However, private transaction pool services can sometimes raise concerns about centralization as they allow intermediaries to access transactions before they are published on Ethereum. Addressing this concern, ConsenSys emphasizes the difference of its virtual transaction pool and the necessity of addressing the significant hidden costs of Ethereum. Linehan expressed that
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