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Zero-Knowledge Encryption Protocol for Neo X DKG Successfully Completes Audit

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Zero-Knowledge Encryption Protocol for Neo X DKG Successfully Completes Audit

  • This is the last stage before Neo X’s Anti-MEV capability is implemented by deploying to TestNet and subsequently MainNet.
  • Neo X’s Anti-MEV architecture relies on the Distributed Key Generation (DKG) protocol as its cryptographic foundation.

We are thrilled to announce that the audit of the zero-knowledge Distributed Key Generation (DKG) protocol, which underpins the Neo X Anti-MEV solution, has been successfully completed.

Hacken, a top Web3-native security firm, carried out the audit. After Hacken’s thorough assessment, we worked closely with their specialists to improve and optimize the code in line with their suggestions. We are certain that the code is ready for the next deployment phase now that these improvements have been made.

This is the last stage before Neo X’s Anti-MEV capability is implemented by deploying to TestNet and subsequently MainNet.

Neo X’s Anti-MEV Mission

Neo X is an EVM-compatible, high-performance chain that runs concurrently with Neo N3. It acts as a boundary and a link between the Neo ecosystem and the larger EVM community. However, we’re not only concerned with compatibility; Neo X is designed to address Maximal Extractable Value (MEV), one of DeFi’s main issues.

Block producers steal billions of dollars annually from consumers by reordering transactions for profit, which leads to MEV. We use wrapped transactions, a technique that hides transaction information from block producers until confirmation, to prevent this. This eliminates the option to rearrange transactions for one’s own benefit.

Why DKG Matters

Neo X’s Anti-MEV architecture relies on the Distributed Key Generation (DKG) protocol as its cryptographic foundation. It enables validators to work together to create key pairs, in which transactions are encrypted (or “enveloped”) using the public key. A threshold, usually two-thirds of the validators, is needed to decode the transaction once the private keys are divided among the validators. This approach assures block finality while preventing chain reorganizations, keeps transactions safe, and prevents any one validator from censoring or altering them.

Results of the Audit

Hacken’s audit identified 15 findings:

  • 11 issues were fully resolved
  • 4 were acknowledged and accepted

We think the code is now prepared for deployment as these issues have been fixed. Hacken, an end-to-end blockchain security and compliance partner for digital assets, was born on blockchain. The European Commission, ADGM, MetaMask, Ethereum Foundation, and Binance are among the 1,500 adopters who have trusted Hacken since its establishment in 2017. It is a privilege to have their knowledge support our efforts, which strengthens the credibility and dependability of our network.

What Comes Next

We are getting ready to deploy Anti-MEV on Neo X, first to TestNet and then to MainNet, now that the audit is complete. For everyone creating and transacting in the Neo ecosystem, this innovation aims to provide a more equitable, safe, and reliable DeFi environment.

As we get closer to being live, we are eager to share the next developments. Keep an eye out!

Neo X Introduces ZK Trust Relay to Boost Robustness and Security

Neo is currently encouraging developers to contribute to improving the security and resilience of Neo X’s Anti-MEV system by establishing the ZK Trust Relay, a Multi-Party Computation (MPC) initiative centered on the recently audited ZK DKG code. When qualified individuals successfully do their duties, they will be rewarded with GAS tokens. Don’t pass up the opportunity to help secure the Neo ecosystem of the future!

Visit https://form.typeform.com/to/idZyziP5 to register.

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