Mainz, Feb. 13, 2025 (GLOBE NEWSWIRE) -- Shutter Network, a leading innovator in blockchain technology, in collaboration with blockchain infrastructure providers Chainbound, MEV Blocker, Gnosis, and Nethermind, today unveiled a practical roadmap for bringing privacy and fairness to Ethereum by introducing its first encrypted mempool. The proposal outlines a practical path towards a future where every Ethereum user is automatically protected against exploitative trading practices-making front-running, sandwich attacks, and real-time censorship not just difficult to execute but technically impossible. This encrypted mempool will fundamentally change how transactions are processed, ensuring that all transactions are treated fairly while maintaining the network's core principles of verifiability and decentralization.
Since 2020, over $1.8 billion has been extracted through MEV on Ethereum, largely at the expense of everyday users. This isn't just a byproduct of market dynamics; it's the result of specialized bots and validators seeing pending transactions and exploiting them for profit. This exploitation undermines Ethereum's promise of being an open, fair financial system accessible to all.
Shutter Network's proposal introduces an encrypted mempool - a way to keep transactions private until they are ready to be processed. This prevents anyone from seeing transaction details in advance and exploiting that information. The technology acts like a secure and decentralized envelope system: users seal their transactions in encrypted "envelopes" that can only be opened using threshold encryption, requiring cooperation from a distributed group once the transaction is ready to be processed, ensuring everyone plays by the same rules.
"What we're proposing is a long-term plan to make Ethereum fair for everyone," said Heiko Franßen, CEO at brainbot, a core contributor to Shutter Network. "With our proposal, instead of transactions being visible to everyone before they're processed, which allows for exploitation, we're creating a system where they stay private until the right moment. This levels the playing field for everyone using the network."
The proposal aligns with Ethereum founder Vitalik Buterin's recent emphasis on encrypted mempool being "crucial" for implementing key network improvements, including ways to make the network more decentralized and fair.
The proposal builds on top of Shutter Network's deployment on Gnosis Chain since July 2024, where the technology has been securing transactions through a distributed network of node operators (Keypers). This real-world implementation has provided valuable insights that informed the Ethereum proposal.
"Previous attempts at solving MEV attacks have relied too heavily on centralized solutions that create new risks," said Luis Bezzenberger, Head of Product at brainbot. "Our approach distributes trust across multiple parties and integrates directly with existing systems, making it much more practical to implement whilst maintaining strong security guarantees."
The proposal outlines three phases for bringing encrypted mempool to Ethereum:
- Integration with existing infrastructure to make encrypted transactions available to users
- Enhanced protections through improved block building processes
- Full integration into Ethereum's core protocol
The implementation strategy has already garnered support from major infrastructure providers and protocol developers who recognize the need for protocol-level privacy solutions. The collaborative approach ensures that the technology can be implemented efficiently across the Ethereum ecosystem while maintaining compatibility with existing systems.
"MEV Blocker is excited to be part of the effort to bring an encrypted mempool to Ethereum," said Anna George, CEO of CoW DAO. "We're particularly interested in step 1 of the proposal, which is to integrate Shutter's threshold encryption into MEV Blocker's fully private transaction routing, enabling us to tackle front-running and censorship more effectively. By collaborating on this effort, we aim to enhance privacy and fairness in transaction execution while reinforcing Ethereum's decentralization.”
The vision extends beyond just preventing exploitation - it lays groundwork for "Fully Private Ethereum," where advanced cryptographic techniques would enable complete transaction privacy whilst maintaining full verifiability. This represents a significant step toward achieving Ethereum's original promise of a truly neutral, censorship-resistant financial system.
"Implementing protocol-level privacy solutions represents a commitment to fairness and trust in decentralized systems," said Philippe Schommers, Head of Infrastructure at Gnosis. "These solutions ensure equal access and protect participants from exploitation, making privacy a fundamental feature rather than an afterthought. This is how we build a more resilient and equitable Ethereum ecosystem."
The initiative represents a crucial milestone in blockchain technology's evolution, combining practical implementation experience with innovative cryptographic approaches to address one of the industry's most pressing challenges.
The complete whitepaper detailing the proposal is available at Ethereum Research.
Shutter Network invites feedback and contributions from the broader Ethereum community as development continues.
About Shutter Network
Shutter Network is an open-source threshold encryption protocol initially developed by brainbot GmbH that brings fairness and information symmetry to blockchain systems. Through advanced cryptographic methods, the protocol prevents transaction manipulation, protects against malicious MEV and ensures credibly neutral transaction processing. At its core, Shutter Network represents a fundamental shift in how blockchain systems handle information fairness and user protection.
About brainbot GmbH
brainbot GmbH, headquartered in Mainz, Germany, specializes in the development, distribution, licensing and operation of open-source blockchain software. As a software development firm, brainbot focuses on advancing fair and secure decentralized technology through various client initiatives and core protocol development. Since March 2021, brainbot has served as the core development team behind the Shutter protocol, leading technical development and innovation. The company maintains a clear position as a service provider and technical contributor, receiving grants from Shutter DAO 0x36 to fund ongoing development work. This relationship allows brainbot to focus on technical excellence while maintaining appropriate distance from token economics and governance decisions.
About Gnosis
Gnosis is building open applications and infrastructure for the new economy. The Gnosis ecosystem is underpinned by Gnosis Chain, a secure, resilient, and decentralized blockchain that extends Ethereum with lower transaction costs. Gnosis Studios is a product incubator focused on payments, identity, and internet freedom, while GnosisVC is an early-stage investor in projects focused on decentralized infrastructure, real-world assets, and financial rails.
About Nethermind
Nethermind is a leading research and software engineering company developing tooling and infrastructure for blockchain ecosystems, specializing in Ethereum and Layer 2. With a focus on enhancing security, scalability, and stability, Nethermind drives innovation and adoption within the blockchain industry.
About Chainbound
Chainbound is a research and development organization building optimized infrastructure and networking tools for blockchains. The company operates under a venture studio model and develops products across MEV, P2P and proposer commitments verticals.
About MEV Blocker
MEV Blocker is a virtual mempool that protects users from malicious MEV. Developed by CoW DAO, MEV Blocker is the category leader in market share and rebates generated for users. It's the best protection under the sun, for all kinds of Ethereum transactions.
CONTACT: Araminta Bloom
