**BITE** is an innovative protocol from the SKALE Network ecosystem, launching first on the new **FAIR Layer 1 blockchain**. Designed for seamless integration and massive potential, BITE enables a wide range of critical functions—ushering in a new era of encrypted, private, and MEV-resistant blockchain usage. The following post explores the key benefits of BITE, FAIR, and the upcoming SKALE Network upgrade, including a **unique way to attain Proof of Encryption (PoE) with zero changes required from developers**. --- ## The Benefits of BITE While some of these benefits can arrive sooner depending on SDK implementation and adoption, I’ve organized them into **short**, **mid**, and **long-term** buckets. ### 🟢 Short Term - Fully encrypted transactions with 100% protection against MEV, including back-running - Onchain traditional finance tools: private and FAIR TWAPs, DCA, and market orders - Censorship resistance - Simple integration with **zero changes to Solidity** ### 🟡 Mid Term - AI-powered onchain trading via enhanced encrypted financial tools - End-to-end encryption with re-encryption inside a TEE (Trusted Execution Environment), enabling data forwarding to specific parties for private decryption ### 🔵 Long Term - Fully encrypted private state - Onchain healthcare and banking use cases - Fully encrypted **parallel execution** within the EVM ---- ## How Proof of Encryption Works **Proof of Encryption (PoE)** embeds encryption into the consensus layer of a blockchain. Unlike Layer 2 solutions (e.g. Unichain) that use TEEs in isolation, PoE **does not depend on decentralization alone**—it relies on **provable mathematics**. > The SKALE Network core team has over seven years of experience building the world’s fastest leaderless BFT consensus. They’ve combined real-world application with rigorous mathematical proofs to pioneer PoE. ### 🧠 How It Works PoE uses: - **Threshold schemes** + - **BLS threshold encryption** + - **Multi-party threshold signatures** + - **Economic PoS security** This combo allows encrypted transaction propagation, leaderless/asynchronous consensus, and decryption via supermajority—all secured cryptographically and economically. The result? **Private, MEV-resistant, decentralized consensus**—unlocking trillions in new financial use cases. --- ## How to use BITE **BITE Protocol** is the implementation of PoE when used with a compatible blockchain like FAIR or (soon) SKALE Chains. The best part? **Zero changes to your Solidity contracts**. ### Example Using BITE TypeScript/JavaScript Library  ```bash npm add @skalenetwork/bite ``` The library makes it easy to encrypt both transaction data and the `to` address in just a few lines of code. --- ### What's with the Cloud? Over the last several years of working in blockchain, I’ve realized one thing: **an innovative product is only useful if it’s easy to implement**. That’s why I collaborated with [@0xRetroDev](https://x.com/0xRetroDev) to build a simpler, cloud-based design for broader adoption. ### Background If you’ve heard of **Flashbots**, **CoW Swap**, or **Jito**, you know they’re tied to **MEV** (Maximal Extractable Value). If not, here’s a simplified breakdown: - **MEV** is profit gained by reordering or inserting transactions. - **Bad MEV** = front-running, sandwich attacks, back-running. - **Good MEV** = arbitrage, liquidations that help price stability or protocol solvency. - **Some firms (e.g. Jito)** make validators more profitable via MEV. - **Others (e.g. CoW Swap)** attempt to *protect users* from MEV. > **Bottom line:** MEV is mostly harmful and extracts value away from users. ### Simplifying Adoption Widespread usage builds a **network effect**. Just as Jito dominates Solana validators and MEV-blocker RPCs like CoW Swap are spreading, we aim for BITE to be universally accessible—across stacks, devices, and languages. ### Phase I: BITE API A PoC implementation is already live thanks to [@0xRetroDev](https://github.com/0xRetroDev): 🔗 [BITE API GitHub Repo](https://github.com/0xRetroDev/bite-api) This API allows any transaction to be encrypted by calling the endpoint. It’s ideal for: - Environments without native BITE SDKs - Languages outside JavaScript/TypeScript - Setting up early MPC experiments or agentic flows > ⚠️ **Note:** Because `eth_estimateGas` can't work properly with encrypted transactions, this can unintentionally leak user intent if used via 3rd-party RPCs. A production-ready version will soon be hosted via [Eidolon.gg](https://eidolon.gg) for the FAIR + SKALE Communities. --- ### Phase II: Private BITE API To fully solve the **privacy problem**, we propose a unique infrastructure setup modeled on how FAIR and SKALE operate. #### Infrastructure 1. Run a TEE (Trusted Execution Environment) 2. Generate a private key *inside* the TEE 3. Expose the **public** key via API #### SDK Flow 4. Client requests public key 5. Client encrypts transaction payload using public key 6. TEE decrypts using internal private key 7. TEE re-encrypts using FAIR/SKALE BLS committee key 8. Returns encrypted payload to client 9. Client signs + broadcasts This allows **any client**—C++, Kotlin, IoT, etc.—to securely use BITE without needing full Web3 tooling or native SDK support. Yes, there are risks and trade-offs here. But I believe this is a great **early-stage design** for broader PoE adoption. --- ## 👋 About Me Hi, I’m **Sawyer**, a software engineer, developer relations lead, and operational consultant with a background in healthcare and blockchain. - Follow me on [X](https://x.com/thegreataxios) - Connect on [GitHub](https://github.com/TheGreatAxios) - You can [Buy Me a Coffee](https://buymeacoffee.com/thegreataxios) - Need help? Contract [Dirt Road Dev](https://dirtroad.dev) Feel free to DM me with questions or collaboration ideas. Thanks for reading! — **TheGreatAxios**