Neo, the open-source blockchain platform, has revealed its plans for the development of a new Ethereum Virtual Machine (EVM)-compatible sidechain, a move aimed at expanding its capabilities in the decentralized finance (DeFi) sector.
Sidechain Will Offer Interoperability With NEO N3 Mainnet
In a press release shared with CryptoNews, Neo revealed that its sidechain will offer full interoperability with Neo N3 (Mainnet), retaining key Neo features, including the delegated Byzantine Fault Tolerance (dBFT) consensus mechanism.
This will result in faster transactions, improved scalability, and enhanced fairness within the network. Developers will also benefit from the Neo-VM multi-language development environment, which grants them flexibility to create smart contracts in their preferred programming language.
In recent years, DeFi has emerged as a prominent application in the blockchain space. However, the threat of Miner Extractable Value (MEV) attacks has cast a shadow over its potential.
These attacks exploit the transparency of transaction details in DeFi transactions, often leading to issues like front-running and sandwich attacks.
Users Can Encrypt Transaction Content and Metadata
To address these concerns, the Neo Sidechain is engineered with advanced security measures. It provides the option to “envelop” transactions, enabling users to encrypt transaction content and metadata, shielding sensitive information from potential attackers.
Users can also utilize proxy contracts to enhance privacy, concealing their identity and deterring exploitation.
These measures combined with Neo’s dBFT consensus mechanism aim to create a more secure and fair trading environment.
Neo Founder, Da Hongfei said:
This year, we embark on a new chapter, as we embrace Hong Kong and its unique position as the gateway between East and West and herald the dawn of a more open and proactive Neo community.
