Neo, the open source blockchain platform, has revealed its plans for the development of a new sidechain compatible with the Ethereum Virtual Machine (EVM), 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 greater fairness within the network. Developers will also benefit from the Neo-VM multi-language development environment, which gives them the 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 overshadowed its potential.
These attacks exploit the transparency of transaction details in DeFi transactions, often leading to problems such as edge and sandwich attacks.
Users can encrypt transaction content and metadata
To address these concerns, Neo Sidechain is designed with advanced security measures. It provides the option of “wrapping” transactions, allowing users to encrypt transaction content and metadata, protecting sensitive information from potential attackers.
Users can also use proxy contracts to improve privacy, hide their identity, and deter exploitation.
These measures combined with Neo’s dBFT consensus mechanism aim to create a safer and fairer 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 a gateway between East and West and herald the dawn of a more open and proactive Neo community.