Expansion of Ledger LiveTM: Secure Transactions Using In-App MEV Protections for Enhanced Cryptocurrency Safety
In the ever-evolving world of cryptocurrency, securing transactions from potential threats has become a top priority for users. One such threat is Miner Extractable Value (MEV), a strategy used by miners and network validators to gain additional value beyond network rewards and transaction fees.
On December 1, 2024, the Binance Smart Chain experienced a wave of sandwich attacks, affecting 35.5% of blocks and impacting over $1.5B worth of trades across 43,300 transactions. This incident underscores the importance of MEV protection in safeguarding transactions.
Ledger Live, a platform for buying, swapping, and trading crypto while keeping assets safe with a Ledger device, offers integrated MEV protection as part of its secure transaction process. Contrary to popular belief, users do not enable MEV protection directly within Ledger Live, but rather benefit from Ledger's integrated protection mechanisms designed to mitigate MEV risks.
Ledger Live protects users from MEV attacks by preventing front-running and transaction manipulation during transaction signing and broadcasting, ensuring transaction order integrity and user control over gas fees and execution parameters. This protection is an underlying feature of Ledger’s secure transaction process, not a user-enabled setting in the software.
The security features of Ledger hardware wallets, combined with Ledger Live, reduce exposure to MEV attacks by securing private keys offline and enabling users to verify transaction details on-device, limiting the risk of transaction manipulation.
MEV protection involves ensuring transactions are ordered correctly and not exploited by front-running bots or validators with extractive behaviors, a broader ecosystem issue beyond wallet software settings. Some blockchains and validator infrastructures apply advanced MEV mitigation strategies, but these are protocol-level and not directly controlled through Ledger Live.
For deeper MEV protection at the network level, solutions like privacy-preserving block designs or encrypted mempools exist but are managed by the blockchain infrastructure or specialized services, not by individual wallet apps like Ledger Live.
Ledger Live has added an MEV Protection Indicator to transactions, providing users with clear visibility on whether their transactions are secure from MEV attacks. Additionally, Ledger Live has integrated MEV protection by Blink and Merkle to further strengthen its security measures.
In 2023, MEV extracted from the Ethereum blockchain surpassed $600M, highlighting the growing importance of MEV protection. Despite this, Ledger Live does not have a dedicated user option to toggle MEV protection on or off. Instead, users can find more information about enabling MEV protection in Ledger Live by checking out a help center article.
In summary, Ledger Live's MEV protection is an integral part of its secure transaction process, offering tools for securely executing trades, including MEV protection, clear signing for transactions, and more. By using the latest Ledger firmware and Ledger Live, users can benefit from their integrated safeguards against MEV attacks.
It's essential to be vigilant against practices like front-running, back-running, and sandwich attacks, where bad actors can use MEV to gain profits at users' expense. By understanding the risks and using secure platforms like Ledger Live, users can protect their transactions and maintain control over their assets.
- In the crypto app, Ledger Live, users can benefit from integrated MEV protection, a crucial feature designed to safeguard transactions against potential threats like front-running and transaction manipulation.
- For enhanced crypto technology security, some blockchains and validator infrastructures apply advanced MEV mitigation strategies, but these are protocol-level and not directly controlled by an app like Ledger Live, making it crucial for users to be aware of these broader ecosystem issues beyond wallet software settings.
