Neo has introduced the completion of an audit of its zero-knowledge Distributed Key Technology protocol by Hacken, alongside the launch of the ZK Belief Relay marketing campaign. The DKG protocol underpins Neo X’s anti-Maximal Extractable Worth answer, which is designed to forestall block producers from reordering transactions for revenue.
DKG protocol
Neo X’s anti-MEV system is constructed on enveloped transactions, a scheme that conceals transaction particulars from block producers till after a block is finalized.
When a consumer submits a transaction, it’s encrypted beneath a collectively generated public key in order that validators can embody it in a block with out figuring out its contents. Transactions can solely be decrypted as soon as the block is finalized.
This course of depends on Distributed Key Technology, which splits the decryption key throughout validators. A threshold of members is required to reconstruct the important thing, guaranteeing no single validator can front-run, reorder, or suppress transactions.
By embedding this mechanism into Neo X, the community goals to create a extra trustless and tamper-resistant basis for DeFi exercise.
Hacken audit
Hacken, a blockchain safety firm, recognized 15 points throughout the audit. Eleven had been resolved and 4 had been acknowledged. No important vulnerabilities had been discovered. The auditors highlighted the power of the multi-curve cryptographic structure and recursive proof system, whereas recommending enhancements in testing and defensive programming.
Among the many high-severity findings, Hacken famous lacking subgroup validation for elliptic curve factors, which might have weakened cryptographic assumptions. The problem was addressed by including subgroup checks. A customized key derivation operate was additionally changed with a regular SHA3-based design to forestall cryptanalysis.
Medium-level findings included an array bounds bug, lacking authentication tags in AES-GCM, and a hardcoded randomness beacon. These had been both mounted or accepted with mitigation in place.
Broader dangers had been additionally famous, together with reliance on a single good contract for DKG, dependencies on exterior frameworks reminiscent of gnark, and publicity to cross-chain dangers by means of bridge interactions.
Hacken emphasised the necessity for additional integration and stress testing earlier than manufacturing deployment.
ZK Belief Relay
To additional scale back centralization dangers and enhance the robustness of the setup course of, Neo X has launched the ZK Belief Relay. The marketing campaign makes use of multi-party computation, the place unbiased members contribute randomness to generate a ultimate structured reference string.
The SRS acts because the trusted setup for the zero-knowledge system, and distributing its creation makes it immune to compromise by any single participant.
As much as 15 builders will probably be chosen to participate within the relay. Starting Aug. 28, they’ll full cryptographic duties in sequence, with the method persevering with till Sept. 18. The ultimate SRS file will then be launched for public verification. Every participant who completes their process will obtain 20 GAS.
The marketing campaign is geared toward builders with backgrounds in cryptography and distributed programs, reflecting its significance to the belief ensures of Neo X’s anti-MEV protocol. Registration is open till Aug. 26.
The complete Hacken audit report will be learn on the hyperlink under:
https://hacken.io/audits/neo-x/l1-neo-x-zk-dkg-functionality-jun2025/
