Hacken Successfully Audits the Zero-Knowledge Distributed Key Generation (DKG) Protocol

Twitter icon  •  Published för 3 veckor sedan on August 21, 2025  •  Hassan Maishera

The Zero-Knowledge Distributed Key Generation (DKG) protocol powering Neo X’s Anti-MEV solution has been audited by Hacken.

Hacken Successfully Audits the Zero-Knowledge Distributed Key Generation (DKG) Protocol

DKG has announced that it has completed the audit of the zero-knowledge Distributed Key Generation (DKG) protocol powering the Anti-MEV solution on Neo X.

In a press release shared with Cryptowisser, the team said the audit was conducted by Hacken, a leading Web3-native security company. Following Hacken’s comprehensive audit, DKG collaborated closely with Hacken experts to refine and optimize the code per their recommendations. With these enhancements complete, DKG is confident that the code is fully prepared for the next phase of deployment.

This marks the final step before we deploy to TestNet, then MainNet, bringing Neo X’s Anti-MEV functionality to life.

DKG’s Anti-MEV Mission on Neo X

According to DKG, Neo X is a high-performance, EVM-compatible chain running in parallel with Neo N3. It serves as a bridge and frontier between the Neo ecosystem and the broader EVM world. 

However, DKG isn’t only focused on compatibility, as Neo X is also designed to tackle one of DeFi’s biggest problems: Maximal Extractable Value (MEV).

MEV happens when block producers reorder transactions for profit, extracting billions of dollars from users each year. To counter this, DKG leverages enveloped transactions, a mechanism that seals transaction details from block producers until after confirmation. This removes the ability to reorder transactions for personal gain.

Why DKG is Useful to the Neo X Ecosystem

The Distributed Key Generation (DKG) protocol is the cryptographic core of Neo X’s Anti-MEV design. It allows validators to collaboratively generate key pairs, where the public key is used to encrypt (or “envelope”) transactions. 

The private keys are split among the validators, and a threshold — typically two-thirds of validators — is required to decrypt the transaction. This mechanism ensures that transactions remain secure, prevents any single validator from censoring or manipulating them, and guarantees block finality while avoiding chain reorganizations.

Results from the Hacken Audit

  • Hacken’s audit identified 15 findings:

  • 11 issues were fully resolved

  • 4 were acknowledged and accepted

With these addressed, the team believes the code is now ready for deployment.

Born on blockchain, Hacken is an end-to-end blockchain security and compliance partner for digital assets. Since its founding in 2017, Hacken has been trusted by 1,500 adopters, including the European Commission, ADGM, MetaMask, Ethereum Foundation, and Binance.

Moving Foward

With the audit now completed, the team is preparing to roll out Anti-MEV on Neo X — first to TestNet, and then to MainNet. This innovation is designed to deliver a fairer, secure, and trustworthy DeFi environment for everyone building and transacting in the Neo ecosystem.

Neo X Launches ZK Trust Relay to Enhance Security and Robustness

Neo is now launching the ZK Trust Relay, a Multi-Party Computation (MPC) campaign around the newly audited ZK DKG code. With this launch, Neo X is inviting developers to help enhance the security and robustness of its Anti-MEV system. Qualified participants will receive rewards in GAS tokens for completing their tasks.

 

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Hassan Maishera

Hassan is a Nigeria-based financial content creator that has invested in many different blockchain projects, including Bitcoin, Ether, Stellar Lumens, Cardano, VeChain and Solana. He currently works as a financial markets and cryptocurrency writer and has contributed to a large number of the leading FX, stock and cryptocurrency blogs in the world.