Neo, an open-source blockchain platform, has revealed plans to develop a sidechain compatible with the new Ethereum Virtual Machine (EVM). This move is aimed at expanding its capabilities in the decentralized finance (DeFi) sector.
Neo’s sidechain will provide full interaction with the Neo N3 Mainnet while retaining key features of Neo, including the Delegated Byzantine Fault Tolerance (dBFT) consensus mechanism. This is expected to lead to faster transactions, improved scalability, and increased fairness within the network. Developers will also benefit from the multi-language development environment of the Neo Virtual Machine (Neo-VM), allowing flexibility in writing smart contracts in their preferred programming languages.
In recent years, DeFi has gained prominence in the blockchain space. However, the threat posed by 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 such as front-running and sandwich attacks.
To address these concerns, Neo Sidechain is designed with advanced security measures. It offers an “envelope” option for transactions, allowing users to encrypt content and transaction metadata, protecting sensitive information from potential attackers. Users can also use proxy contracts to enhance privacy, concealing identities and preventing exploitation.
These security measures, combined with Neo’s dBFT consensus mechanism, aim to create a safer and more equitable transaction environment.
Da Hongfei, the founder of Neo, stated, “This year, we embark on a new chapter as we grasp Hong Kong and its unique position as the gateway between East and West, heralding the dawn of a more open and proactive Neo community.”