Kseniia is the Chief Content Officer of Coinspeaker, holding this position since 2018. Now she is very passionate about cryptocurrencies and everything connected with it, so she tries to ensure that all the content presented on Coinspeaker reaches the reader in an understandable and attractive way. Kseniia is always open to suggestions and comments, so feel free to contact her for any questions regarding her duties.
Automata Network, a decentralized service protocol that recently concluded a $2.4 million funding round led by KR1, has made significant progress in offering privacy solutions to decentralized applications (DApps).
The protocol provides privacy-oriented middleware that developers can leverage to create ecosystems with traceless privacy and frictionless computations. A fundamental that Automata Co-founder, Deli Gong, believes will support the shift from centralized networks to distributed ecosystems. He says:
“We believe that making a break away from centralized infrastructure is only the beginning and that offering developers and users an intuitive, seamless experience to make privacy a built-in option is the only way to move forward.”
While privacy remains at the core of Automata’s solutions, the project has further ventured to create a solution for the Miner Extractable Value (MEV) issue. This is a dynamic where miners or front-running bots arbitrarily change the order of transactions to be introduced into a new block. In doing so, they can manipulate the prices of digital assets to their advantage by capitalizing on arbitrage opportunities – a loophole that threatens the pillars of decentralization.
Automata’s solution for the MEV issues is dubbed Conveyor, a service that can be integrated across multiple platforms. This innovation is designed to prevent miners and front-running bots from interfering with transaction ordering for their benefit.
Conveyor – The Solution to MEV
The Conveyor service by Automata Network eliminates the challenges caused by MEV within the crypto ecosystem. This service protects crypto users from miners and front-running bots intending to reorder blockchain transactions.
Automata’s Conveyor acts as a neutral middle-man by ordering transactions from the mempool (off-chain transactions waiting to be added into a block for confirmation) and relaying them as outputs to be added into a new block. Once the transactions have been relayed, miners can’t alter the order of the Conveyors output. However, they can be altered in a scenario where all block producers collude to change the order.
The Automata Conveyor service is complemented by the protocol’s privacy tools which include a decentralized compute plane backed by several Geode instances and the platform’s oblivious RAM algorithm. Notably, the geode instances can be attested to prove that each instance is backed by a system running on genuine hardware such as a CPU.
On the other hand, Automata’s oblivious RAM algorithm enhances data privacy by preventing access pattern leakage. This is especially important in a world where users are consistently monitored by malicious actors looking to exploit private information for MEV purposes.
As the globe becomes more interconnected, privacy remains a critical issue in both centralized and decentralized ecosystems. Most regulators worldwide have come up with data protection laws to protect consumers and industries at large. Similarly, blockchain innovations have realized that privacy will play a significant role in shaping decentralized ecosystems. While Automata has taken the lead, more privacy solutions across the blockchain sector are likely to pop up.
On the MEV solutions, it is also evident that a neutral and fairground needs to be established for all players, including miners. Automata’s Conveyor service sets out to build such an environment while combining fundamental privacy features. This innovation paints the picture of a decentralized world where all players operate on a neutral ground.