MetaMask, a prominent cryptocurrency wallet, has announced the rollout of a new feature this week dubbed "Smart Transactions." Aimed at enhancing security for its users, this feature allows transactions to be sent to a virtual mempool for pre-execution modeling, helping combat MEV (Miner Extractable Value) bots and prevent third-party data transmission.
The developers at MetaMask have introduced Smart Transactions as a solution to protect users from MEV bots and various forms of fraud, as reported by CoinDesk. Representatives of the project explained that the core idea behind this innovation is the creation of a virtual mempool, where transactions can be checked for any discrepancies before being processed.
This approach will help eliminate data transmission to third parties and timely detect automated programs involved in so-called "sandwich attacks," which are carried out using the aforementioned MEV bots. A mempool is a temporary storage for transactions awaiting inclusion in the blockchain. Unscrupulous users have learned to exploit this technology to conduct MEV attacks.
Specialized bots, which monitor mempools with pending transactions, spring into action upon detecting a significant deal. They create two trading operations: one before and one after the detected transaction. As a result, the user finds themselves trapped with price slippage and potential financial losses.
Besides guarding against MEV strategies, MetaMask's virtual mempool allows for the simulation of transactions. This feature can lead to lower transaction fees for users. "Every year, $400 million is wasted on transaction reversals, stalled operations, and overt predatory attacks using MEV. Everyone agrees this is a huge problem. From a user experience perspective, the idea of paying for a transaction that yields nothing is simply nonsensical," said Jason Linehan, director of the Special Mechanisms Group at Consensys.
MetaMask developers note that they will engage third-party builders and searchers to process transactions from the virtual mempool. These parties will be subject to financial penalties if they are caught violating the rules and pricing set by the cryptocurrency wallet.
In April 2024, MetaMask also launched a service where users can check for token airdrops from various projects. It is known that the feature is supported on blockchains including Ethereum, Optimism, Arbitrum, Base, Zora, and Polygon.
As a reminder, it was reported that an MEV bot lost about $2 million as a result of a hack.
