@shutter
8 reasons why Ethereum needs an encrypted mempool at the protocol level
1. Ethereum’s public mempool (the waiting area for transactions to be confirmed) is visible to all.
This enables front running, sandwich attacks & real-time censorship. An encrypted mempool fixes the root cause by temporarily hiding transaction contents until confirmed
2. Protection moves toward default
Users must source protection via specific wallets, DEXs, or RPCs - but some never do & they shouldn’t have to. In the long-term, encrypted mempools move us toward a future where all Ethereum users could one day be protected by default
3. Less reliance on trusted private intermediaries
Private mempools are commonly used for MEV protection - they rely on a small group of operators who still see your transaction, but promise not to attack it. Encrypted mempools hide your transactions from EVERYONE.
4. Gives stronger security guarantees for adoption
Serious liquidity & institutions need confidence that transactions cannot be exploited. Encrypted mempools reduce reliance on trusted intermediaries & address concerns that previously hampered Ethereum adoption
5. Protects against harmful MEV while allowing good MEV
Front running & sandwich attacks rely on early transaction visibility - encrypted mempools stop these attacks by removing that early visibility. Good MEV (arbitrage, liquidations & back-running) remain untouched.
6. Complements ePBS & FOCIL for censorship resistance
Together with Encrypted mempools, they create a strong, three-part defense against censorship, making sure your transaction is included on time and cannot be filtered or delayed
7. Reduces builder concentration risk
Most blocks are built by a few builders who gain early access to tx contents - this concentration reduces censorship resistance guarantees. Encrypted mempools allow users to hide tx contents from builders - making censorship more difficult.
8. Designed to be tech agnostic & neutral
Encrypted mempools can support multiple encryption approaches such as MPC, FHE, TEE & future schemes. Any entity can contribute decryption keys, ensuring no single provider controls the system
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Learn more about encrypted mempool & EIP-8105 (the proposal to encrypt Ethereum's mempool)
https://www.encryptedmempool.org/