TL;DR
MetaMask’s New Feature: MetaMask, a leading crypto wallet for Ethereum, has launched a new feature called ‘Smart Transactions’ to help users avoid the negative impacts of maximal extractable value (MEV), a significant issue in the Ethereum network.
Virtual Mempool: The ‘Smart Transactions’ functionality enables users to preliminarily place transactions in a “virtual mempool” before their definitive registration on the blockchain. This digital mempool is designed to safeguard against specific MEV tactics.
User Experience Improvements: Besides guaranteeing more favorable prices for users, the Smart Transactions functionality will also simplify the process for users to monitor the status of their transactions directly through MetaMask.
MetaMask, the leading crypto wallet for Ethereum, has launched a new feature called ‘Smart Transactions’. This innovative feature is designed to help users avoid the negative impacts of maximal extractable value (MEV), a significant issue in the Ethereum network.
MEV refers to the extra profit that blockchain operators can extract by previewing or reordering transactions before they are written to the network. This practice, often compared to front-running orders in traditional financial markets, has a major impact on Ethereum’s operations.
This situation may result in increased costs for consumers, reduced speed of transactions, and the possibility of transactions not completing when network conditions are not optimal. The ‘Smart Transactions’ functionality enables users to preliminarily place transactions in a “virtual mempool” before their definitive registration on the blockchain.
This digital mempool is designed to safeguard against specific MEV tactics and conduct simulations to assist users in achieving reduced transaction costs. Jason Linehan, who heads the Special Mechanisms Group at Consensys, approximates that about $400 million is squandered each year due to reversed transactions, stalled transactions, and exploitative MEV methods.
“From a user experience perspective, the idea that you pay for a transaction that does nothing, that’s, like, nonsensical,” Linehan said.
How MetaMask’s Virtual Mempool Differs from Private Mempools
The virtual mempool solution provided by MetaMask bears resemblance to private mempools, which function to maintain transaction confidentiality and guard against MEV. Nonetheless, Consensys, the company supporting the development of MetaMask, asserts that this new virtual mempool is distinct and essential to tackle the significant concealed expenses of Ethereum.
The Smart Transactions functionality utilizes builders and searchers, the identical operators that drive Ethereum’s public mempool, to operate its virtual mempool. Contrary to the public mempool, builders and searchers in the virtual mempool will incur monetary sanctions if they do not carry out transactions at the rates specified by MetaMask to users.
Linehan asserts that a significant majority, 95%, of the existing builders and searchers on Ethereum have already chosen to participate in MetaMask’s virtual mempool initiative.
Besides guaranteeing more favorable prices for users, the Smart Transactions functionality will also simplify the process for users to monitor the status of their transactions directly through MetaMask. This eliminates the necessity to use separate block explorer sites or tracking platforms.