MetaMask Introduces 'Smart Transactions' to Counter Ethereum Front-Running

MetaMask, Ethereum’s leading crypto wallet, is introducing a new feature, Smart Transactions, to help users combat the impacts of maximal extractable value (MEV).

MEV is the additional profit blockchain operators can extract from users by previewing or reordering transactions before they are confirmed on the network. This is similar to front-running orders in traditional financial markets. This practice significantly affects Ethereum, increasing user costs, slowing down transaction speeds, and causing transactions to fail under certain network conditions.

The optional new feature, Smart Transactions, allows users to submit transactions to a “virtual mempool” before they are officially processed on-chain. This virtual mempool protects against certain MEV strategies, running simulations of transactions behind the scenes to help users achieve lower fees.

According to Jason Linehan, director of the Special Mechanisms Group at ConsenSys, MEV-related issues cost users around $400 million annually due to transaction reversals, stuck transactions, and predatory MEV front-running and sandwich attacks.

MetaMask’s solution, the virtual mempool, aims to address this problem. It’s the first step in a more comprehensive roadmap to overhaul how MetaMask handles transactions on Ethereum.

The virtual mempool concept shares similarities with a private mempool, a strategy gaining popularity for ensuring transaction privacy and protecting against MEV. However, ConsenSys emphasizes that its virtual mempool differs from private mempools and is essential for tackling Ethereum’s hidden costs.

When users send a transaction to Ethereum through MetaMask, it typically goes to a public mempool, where transactions await confirmation. This is where builders and searchers assemble transactions into blocks, which are then added to Ethereum’s blockchain.

However, these builders and searchers sometimes reorder transactions to maximize profits, resulting in higher costs, failed transactions, and user delays. MetaMask’s virtual mempool aims to address this issue.

MetaMask’s virtual mempool network, with its transparent operations and unique incentive scheme, distinguishes it from conventional private mempools. The Smart Transactions feature ensures better prices for users and simplifies tracking transaction progress directly from within MetaMask.

Jason Linehan describes Smart Transactions as the “concrete first step” towards MetaMask’s broader vision, laying the groundwork for future use cases like intent-based architectures.