Neo founder Da Hongfei during his speech at Neo’s APAC hackathon
Neo blockchain has announced the development of a new sidechain compatible with the Ethereum Virtual Machine (EVM). An EVM-enabled blockchain can execute smart contracts written for Ethereum without modifications.
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- Neo founder Da Hongfei introduced the sidechain during his keynote speech at the Neo Asia Pacific Hackathon 2023 Grand Finale, held in Hong Kong.
- The Neo Sidechain will also enable the deployment of smart contracts, paving the way for trading-specific applications, including decentralized finance.
- The sidechain will be interoperable with Neo N3 (mainnet). Additionally, the sidechain is structured to thwart maximum extractable value (MEV) attacks such as frontrunning, to improve the trading experience.
- DeFi has become a popular use case for blockchain technology with over $41 billion in value locked in decentralized applications, according to DeFiLlama data.
- However, MEV attacks threaten its sustainability. The transparency of most DeFi transactions allows attackers to manipulate and exploit transaction details. They use sophisticated algorithms to monitor memory pools, allowing them to perform profitable actions including reordering transactions.
- Neo’s cryptocurrency NEO rose 13.7% to US$8.87 in the 24 hours to 8:20 p.m. in Hong Kong on Friday, posting the strongest daily performance among the top 100 cryptocurrencies by market capitalization.
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