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Front-running has long plagued decentralized finance (DeFi), draining value from regular users and skewing markets in favor of those with privileged access. As decentralized ecosystems grow, ensuring fairness in transaction processing becomes not just desirable, but essential. FAIR Blockchain introduces a groundbreaking solution to this issue by embedding native encryption directly into its Layer 1 infrastructure—rendering front-running and related attacks obsolete.
At its core, FAIR represents a leap forward in blockchain architecture, integrating cryptographic privacy into the consensus mechanism itself. This innovation ensures that transactions remain secure, hidden from manipulation, and only revealed once they're committed and immutable. This is a fundamental shift from the traditional DeFi environment, where transaction data is exposed and vulnerable during propagation.
Front-running occurs when a malicious actor, such as a validator or a high-frequency trading bot, observes a pending transaction in the mempool and submits a similar or conflicting transaction with a higher gas fee to get processed first. These strategies include sandwich attacks, priority gas auctions, and transaction reordering—collectively known as Maximal Extractable Value (MEV).
The implications are severe:
Loss of user funds due to price manipulation
Distorted market behavior from artificial demand or supply
Degraded trust in decentralized systems
Barriers for institutional adoption, where fair execution is a prerequisite
While various Layer 2 solutions and off-chain techniques have attempted to address this issue, none have eliminated it at the root. FAIR Blockchain takes a radically different approach.
FAIR's innovation lies in Blockchain Integrated Threshold Encryption (BITE), a protocol-level encryption system that protects transaction data from submission to execution. This mechanism operates as follows:
Client-side encryption
Transactions are encrypted by users before they are broadcast. This encryption is designed so that no validator or observer can access the transaction contents prior to block finality.
Encrypted consensus process
The blockchain’s consensus mechanism operates on the encrypted data. Blocks are proposed and validated without requiring access to the transaction payload, effectively blinding validators from any actionable information.
Threshold decryption after finality
Once a block is finalized, a distributed committee of validators collectively decrypts the transactions using threshold cryptography. This ensures that no single party has the power to decrypt or manipulate the data prematurely.
Secure execution on FAIR EVM
After decryption, transactions are executed on a high-performance virtual machine. Because decryption occurs only after finality, the execution order cannot be influenced retroactively.
This flow eliminates the opportunity for malicious reordering, inspection, or manipulation. For the first time, a blockchain enables confidentiality and fairness without depending on centralized relayers or trusted setups.
FAIR’s virtual machine is a high-performance, C++-based EVM that supports parallel execution. It is fully compatible with Solidity, making it easy for developers to deploy existing smart contracts with no need for refactoring. Key features of FAIR EVM include:
Instant finality, reducing uncertainty and eliminating the time gap that front-runners exploit
Parallelized transaction processing, which boosts throughput for DeFi protocols, AI applications, and automated market makers
Confidential execution, enabling complex strategies to be implemented without revealing their logic to adversaries
Together, these features create a next-generation execution environment tailored for decentralized finance and autonomous agents.
By making transaction data private until finality, FAIR unlocks several transformative use cases:
On-chain central limit order books (CLOBs)
Traditionally limited to centralized exchanges due to their sensitivity to order timing and visibility, CLOBs can now operate on-chain with the same fairness and price discovery characteristics as their off-chain counterparts.
Protected limit orders and DEX trades
Users can place large or strategic orders without worrying about being front-run or sandwiched, enabling more honest and efficient markets.
AI-powered agents
Automated trading strategies and bots can operate on FAIR without revealing intent, allowing truly intelligent agents to function securely on-chain.
Privacy-first prediction markets and auctions
Fair pricing and outcome prediction mechanisms can thrive when bids and positions are hidden until the appropriate moment.
Institutional DeFi adoption
Financial institutions can participate in DeFi with the confidence that their transactions won't be exploited for profit.
These use cases go beyond patching problems—they represent entirely new frontiers in blockchain application design.
One of the most impressive aspects of FAIR’s architecture is that it delivers fairness and privacy without sacrificing speed. Historically, privacy features in blockchain systems have required trade-offs in latency and performance. FAIR bypasses this constraint by designing encryption into the foundational layer of its protocol and combining it with a scalable EVM optimized for high-frequency activity.
This design not only eliminates MEV but enables mission-critical applications like high-speed trading, decentralized insurance settlements, and AI-native agents.
FAIR is also deeply integrated with the broader SKALE ecosystem. This provides developers with familiar tooling, scalability benefits, and inter-chain interoperability. FAIR is set to serve as the base layer for many SKALE-based applications, particularly those requiring stronger privacy guarantees and execution fairness.
Through its SDK, existing SKALE chains can adopt FAIR’s encryption features, while FAIR itself will support migration and shared liquidity through SKALE Manager. The result is a flexible, interconnected system that brings privacy and fairness to a wider range of use cases.
FAIR operates under a dual-token model, with its native token powering network security, validator incentives, and utility services, while also aligning with SKL for ecosystem-wide functions. This model ensures:
Efficient validator operations
Encouragement of long-term staking and network participation
Support for airdrops and developer onboarding programs
By aligning incentives with performance, the network fosters both decentralization and rapid adoption.
What FAIR Blockchain achieves is more than just a workaround to a long-standing issue. It challenges the assumption that transparency must always be absolute. Instead, it reintroduces selective confidentiality into public ledgers—offering users, developers, and institutions a new paradigm of trust.
This model sets a new bar for blockchain design. Rather than building atop flawed assumptions and patching vulnerabilities after they arise, FAIR addresses the fundamental mechanics of transaction ordering and visibility. The outcome is a blockchain protocol where:
Users no longer fear being exploited by the system
Smart contracts execute under conditions of equal knowledge
DeFi platforms compete on innovation rather than information asymmetry
In short, FAIR isn’t just removing a tax from blockchain transactions. It’s redefining the principles of open, decentralized interaction.
As FAIR prepares for its mainnet launch, it stands poised to influence the next generation of blockchain development. Its focus on performance, fairness, and interoperability makes it an ideal platform for the future of finance and AI.
With public testnets, SDK rollouts, and ecosystem partnerships underway, FAIR is not a distant ideal—it’s an emerging standard. Developers, traders, and investors alike would do well to pay close attention.
FAIR Blockchain’s integration of native encryption and threshold decryption represents a revolutionary approach to preventing front-running. By reengineering the transaction lifecycle and embedding fairness into the very DNA of the protocol, FAIR offers a future where exploitative practices like MEV are no longer possible.
This is not just a technical upgrade—it’s a philosophical realignment with the original ideals of decentralization: equity, transparency, and inclusion. In a blockchain landscape dominated by speed and speculation, FAIR offers something different. It offers trust.
