MetaMask, the leading Ethereum cryptocurrency wallet, is this week announcing a new feature called Smart Transactions that aims to reduce the impact of maximum extractable value on users.
An optional feature, Smart Transactions, allows users to send transactions to a “virtual memory pool” before they are officially recorded on the blockchain. Developed by ConsenSys, the same company that developed MetaMask, this virtual memory pool defends certain MEV strategies by simulating transactions in the background, keeping fees low for users.
MEV represents the ability of blockchain operators to extract additional profits by manipulating transactions before they are processed, similar to front-running in traditional financial markets. MEV significantly impacts the functionality of Ethereum, increasing costs, reducing transaction speeds, and in some cases causing transaction failures.
Jason Linehan, Director of ConsenSys' Special Mechanisms Group, highlighted the prevalence of wasted funds due to MEV-related issues and emphasized the urgent need for solutions to improve the user experience.
MetaMask's virtual memory pool initiative mirrors a private memory pool, which increases transactional privacy and protects against MEV. This is the platform's first step in an ambitious roadmap that aims to revolutionize the way MetaMask's transactions are routed on Ethereum.
Linehan clarified that MetaMask's virtual memory pool is different from traditional private memory pools and is essential to address Ethereum's large hidden costs.
Smart transactions operate by leveraging Ethereum's existing infrastructure, and MetaMask's virtual memory pool imposes financial penalties on builders and searchers for deviations from the quoted transaction price. Linehan pointed out that the majority of Ethereum's current operators have already opted into MetaMask's virtual memory pool program.
In addition to ensuring better prices for users, Smart Transactions simplifies transaction tracking within MetaMask and eliminates the need for users to navigate to external block explorer websites.
Linehan explained that smart transactions are a foundational step toward MetaMask's broader goals and envision future developments such as intent-based architectures.
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