SKALE Labs Publishes Technical Whitepaper for FAIR, Introducing Industry-First “Proof of Encryption” Consensus Protocol
San Francisco, USA / California, September 9th, 2025, Chainwire
Revolutionary blockchain infrastructure eliminates MEV and enables encrypted smart contracts at the consensus layer, unlocking institutional adoption
SKALE Labs, the team behind the gas-free invisible blockchain network, SKALE, today published the comprehensive technical whitepaper for FAIR, the world’s first MEV-resistant Layer 1 blockchain. The whitepaper details FAIR’s breakthrough Proof of Encryption (PoE) consensus mechanism that encrypts all transaction data before validation, eliminating MEV extraction and creating the foundation for encrypted smart contracts that traditional blockchains cannot support.
While Bitcoin proved digital money and Ethereum unlocked programmable finance, FAIR introduces the next evolutionary leap: a Layer 1 blockchain where transaction privacy and fairness are cryptographically guaranteed. This new primitive opens the door for trillions in institutional capital to move on-chain and enables agentic AI and encrypted DeFi to operate free from manipulation.
SKALE Labs CEO and Co-Founder Jack O’Holleran commented on the whitepaper publication, “Proof of Encryption represents a fundamental shift in blockchain architecture. Traditional networks expose transaction data during consensus, creating MEV extraction and making sophisticated strategies impossible to protect. FAIR encrypts transactions before consensus, meaning validators validate blocks without seeing contents, eliminating front-running at the protocol level. This innovation also opens up stable coins for true global adoption as privacy is a critical factor. The FAIR whitepaper details how we’ve unlocked use cases previously impossible on public blockchains.”
The FAIR whitepaper introduces Proof of Encryption through BITE Protocol (Blockchain Integrated Threshold Encryption). BITE encrypts transactions before they hit the mempool, and keeps them encrypted through consensus finalization, eliminating the visibility window that allows for MEV.
Unlike traditional blockchains where transaction transparency creates liability, FAIR’s encrypted infrastructure unlocks use cases that are impossible on other blockchains, such as: encrypted DeFi with private trading and compliance, institutional adoption by protecting advantages and meeting regulations, and agentic AI through autonomous agents that execute strategies without exposure to MEV. This creates the first blockchain infrastructure supporting next-generation encrypted financial applications.
The technical whitepaper is available at: https://www.fairchain.ai/whitepaper
About SKALE Labs
SKALE, the gas-free invisible Layer 1 blockchain network, is “built different” to scale gaming, AI, social, and high-performance dApps to the masses. SKALE Chains are gas-free, fast, and EVM-compatible, making them ideal for a wide range of decentralized applications. With a commitment to driving the mass adoption of Web3 technologies, SKALE empowers developers and businesses to build scalable, efficient, and user-centric blockchain applications.
Harmonizing speed, security, and decentralization, SKALE Labs was born in Cali in 2017 by Jack O’Holleran and Stan Kladko, PhD. As of 2025, the network serves over 55 million unique active wallets and has saved users over $12 billion in gas fees.