Ethereum
Shutter Launches First Threshold Encrypted Memory Pool for Ethereum-Like Networks on Gnosis Chain to Combat US$900 Million Crypto Trading Issue
Mainz, Germany, June 19, 2024, Chainwire
Shutteran open source protocol initially developed by brain robot and focused on preventing maximum extractable value (MEV) malware attacks, today announced the launch of a new anti-front running solution using mempool encryption to combat the exploitation of almost 900 million dollars extracted from crypto transactions each year. In partnership with Gnosisthe architects of the fully EVM-enabled Layer 1 Gnosis Chain, Shutter will be integrated into the Gnosis Chain to protect end-user transactions against front-end and sandwich attacks, protecting traders from malicious MEV activities that can lead to significant monetary losses and unjust influence.
Setting a new standard for MEV protection with deep chain integration
MEV attacks are transactions carried out by attackers who manipulate the outcome of the target transaction within a blockchain that maximizes the financial gains of malicious actors at the expense of merchants and end users. Common malicious MEV activities include sandwich attacks, in which an attacker places their transactions before and after a victim’s transaction. This manipulates the price of the token to the advantage of the attacker, usually driving up the price of the token for the victim.
Despite the increasing frequency of such attacks, existing solutions to this problem often fail to comprehensively address the complexities of MEV attacks. Many traders are still unaware that they are victims of exploitation until they suffer significant losses. Even once informed, victims must take additional steps to protect themselves, often relying on centralized systems that can still censor and extract value.
To fill this gap, Shutter provides malicious MEV protection and a censorship resistance layer via the thresholded encrypted memory pool built into the Gnosis chain. Distinguishing itself from existing methods of combating MEV attacks, Shutter integrates its encryption protocol directly into blockchain networks, preventing manipulators from exploiting transactions. This deep integration means that block producers must commit to including and ordering transactions while they are still encrypted, making them nearly impossible to execute or censor. This also ensures that traders are protected against monetary losses without the need for additional measures.
Combating the uncontrolled spread of malicious MEV attacks with decentralized encryption for fair trading
Shutter’s unique approach is exceptionally essential in today’s maturing Web3 landscape where hundreds of millions of dollars are stolen every year only on Ethereum thanks to MEV tactics. These attacks exploit the public nature of blockchains and go largely unchecked, thereby reducing market efficiency, diminishing trust in the system, and making it fundamentally unfair.
Shutter’s encrypted memory pool also mitigates censorship in real-time, ensuring that transactions remain private until they are included in a block. This prevents malicious actors from selectively excluding transactions, thereby reinforcing the fundamental principles of public blockchains: openness, neutrality and accessibility. By increasing information symmetry through Shutter’s encryption approach, the playing field is leveled. At the same time, the integrity of public blockchains is preserved, providing greater confidence to retail and large institutional investors, typically deterred by the rat race in decentralized finance (DeFi) from entering the space, attracting a wider range of long-term participants.
A strategic integration
Gnosis Chain’s integration of Shutter directly addresses the widespread problem of malicious MEVs through preventative measures, unlike many other blockchains that continue to struggle to address these growing issues, marking a milestone not only for the Shutter community , but for the industry as a whole. Moving toward the shared vision of a more equitable blockchain ecosystem, Gnosis Chain’s relentless focus on decentralization and accessibility aligns with Shutter’s efforts to address contemporary industry challenges hindering Web3 adoption . Ultimately, Shutter will play a critical role in encouraging more secure crypto transactions, increasing censorship resistance, and preventing value leaks.
A vision for the future
This integration is one of several underway for Shutter that is helping to build momentum in the fight against malicious MEV attacks in the Ethereum ecosystem. Collectively, Shutter and its partners will protect users from manipulation, ensuring fair access and maintaining a neutral base layer.
Luis Bezzenberger, product manager at brainbot said: “We are extremely excited to unveil a protocol that can solve one of the most prevalent problems in today’s decentralized finance landscape. Gnosis Chain is home to one of the most vibrant communities in Web3 and by joining forces we can strengthen the Web3 ecosystem and provide Gnosis Chain users with a transparent, fair and more profitable trading experience.
Philippe Schhommers, infrastructure manager at Gnosis said: “We are excited to join Shutter’s mission to create a transparent, equal and secure Web3 ecosystem for everyone. By integrating Shutter, we believe we are able to provide the best user experience for our developers and builders and are committed to continuing to demonstrate the sustained growth of our ecosystem through robust integrations and partnerships with protocols, dApps and promising projects.
Martin Köppelmann, co-founder of Gnosis said: “Safety and fairness remain at the heart of everything we do. The integration with Shutter not only strengthens the resilience and neutrality of our network, but will also set an industry benchmark for strengthening protections against third-party value extraction of network users, leveling the playing field for the future of Web3 and decentralized finance.
Shutter will launch on July 11, 2024, the last day of the Ethereum Community Conference (EthCC), Europe’s largest annual technology and community-focused Ethereum event.
About the shutter
Shutter is free, open source software designed to protect the crypto community from those who manipulate the blockchain for their own gain. With threshold encryption, Shutter ensures base layer neutrality, information symmetry, and accessibility in trading, voting, and gaming.
About Brainbot
brain robot GmbH specializes in the development, distribution, licensing and operation of software, while providing a wide range of related services. As the lead developer of Shutter, Brainbot plays a central role in the advancement of blockchain technology.
About Gnosis
Gnosis is developed by a world-class team of leaders in blockchain and payments. The Gnosis channel is designed around community ownership, resilience, and credible neutrality. The highly decentralized network is secured by over 200,000 validators and over 2,000 nodes, across 70 countries and 5 continents.
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