Thread by @Sky_ranker

We are going to introduce the first solution provided by @project_shutter called “On-chain Shutter“, and will do others in our next thread.

Today’s Topic
- Brief intro. of Shutter Network
- Problem ：Front-Running
- Solution ：On-chain Shutter

Let’s dive in 👇

https://twitter.com/Sky_ranker/status/1564580788208750594

Shutter Network is an anti-MEV/front running solution on Ethereum using a DKG and threshold encryption, and built by @bezzenberger - PM@_brainbot. Brainbot technologies has significantly contributed to the core development of the Ethereum project from the very beginning.

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The design of Shutter Network is to who needs to prevent Front-Running/ MEV can conduct transactions through its integrated terminal, which is different to our previous thread of #Flashbot. Flashbot is more for Validators, and Shutter Network is for "All" users.

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Front-Running is the act of placing a transaction in a queue with the knowledge of a future transaction, and usually happens when a miner who has access to information on pending transactions. Miner can set a higher gas to place an order that would earn a profit.

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In many cases, miners colluded with front-running robots for arbitrage. The most typical example is "Sandwich Attacks" which is aimed at AMM transactions. In addition, there are also front-running attacks aimed at arbitrage, liquidation transactions, flash loans, etc.

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“On-chain Shutter“ serves users who need anti-front running transactions, that is, using encryption technology to hide transaction information, so that the attacker can neither determine whether the transaction is a buy or sell order, nor the token or price.

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And adds it to the block, then decrypts and executes the transaction. Technical speaking, a decentralized autonomous organization (DAO) manages the system at the heart of the Shutter architecture. Its main task is to hire a set of special nodes called keypers.

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The keypers generate cryptographic keys with which users encrypt their transactions. The majority of keypers are trusted to act honestly according to the protocol, while a minority can be malicious or offline.

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However, distributed key generation (DKG) protocols are inefficient with many participants, so running one for each epoch is not viable. Therefore, Shutter uses a two-step process:

1. a conventional DKG process is carried out, generating the so-called eon key pair.

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2. Transactions are not encrypted and decrypted with the eon keys directly, but with so-called epoch keys.

Some questions.

1. Since transactions will still be reviewed and even reordered by miners after entering the Mempool, it cannot fundamentally solve the MEV problem.

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2. Threshold encryption may bring network latency.
3. Since its design is to build a proxy contract on the outer layer of the original DeFi protocol, it will directly affect the composability of the DeFi protocol.

Learn more on blog.shutter.network/shutter-in-dep…

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And Shutter Network trying to solve above questions, then provide it second product “Shutter Beacon Chain“. (ethresear.ch/t/shutterized-…)

To be continued..

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