Mainz, Germany, June 19, 2024, Chainwire
Shutter, an open source protocol initially developed by Brainbot and focused on preventing malicious maximum extractable value (MEV) attacks, today announced the launch of a new anti-front running solution that uses Mempool encryption to combat the exploitation of nearly 900 million dollars stolen from crypto operations annually. In partnership with Gnosis, the architects of the fully EVM-compliant Layer-1 Gnosis Chain, Shutter will be integrated into Gnosis Chain to protect end-user transactions against front-end and sandwich attacks, protecting merchants from malicious MEV activities that can result in significant monetary loss and unfair 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 the victim's transaction. This manipulates the token price to the attacker's advantage, typically increasing the token price for the victim.
Despite the increasing incidence of these types of attacks, existing solutions to this problem often fall short of comprehensively addressing the complexities of MEV attacks. Many traders remain unaware that they are victims of exploitation until they suffer significant losses. Even once they are informed, victims have to take additional steps to protect themselves, often turning to centralized systems that can still censor and extract value.
To address this gap, Shutter provides malicious MEV protection and a censorship resistance layer through the threshold encrypted mempool built into Gnosis Chain. Distinguishing itself from existing methods of addressing 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 the inclusion and order of transactions while they are still encrypted, making it nearly impossible to preempt or censor. This also ensures that traders are protected from monetary losses without the need for additional measures.
Addressing the rampant spread of malicious MEV attacks with decentralized encryption for fair trade
Shutter's unique approach is exceptionally critical in today's mature Web3 landscape, where hundreds of millions of dollars are stolen each year through MEV tactics alone. These attacks exploit the public nature of blockchains and go largely unchecked, reducing market efficiency, decreasing trust in the system, and making it fundamentally unfair.
Shutter's encrypted mempool also mitigates real-time censorship, ensuring that transactions remain private until they are included in a block. This prevents malicious actors from selectively excluding transactions, reinforcing the basic 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, who are typically deterred by the rampant front in decentralized finance (DeFi) from entering the space, attracting a broader range of long-term participants.
A strategic integration
Gnosis Chain's integration of Shutter directly addresses the rampant issue of malicious MEV through preventative measures unlike many other blockchains that continue to struggle to resolve such growing issues, marking an important milestone not only for the community. for Shutter, but for the industry in general. Moving toward the shared vision of a more equitable blockchain ecosystem, Gnosis Chain's relentless focus on decentralization and accessibility harmonizes with Shutter's efforts to address contemporary industry challenges impeding Web3 adoption. Ultimately, Shutter will play a vital role in encouraging safer cryptocurrency trading, increasing censorship resistance, and preventing the leak of value.
A vision for the future
This integration is one of many in the works for Shutter that helps build momentum to combat malicious MEV attacks across the Ethereum ecosystem. Collectively, Shutter and its partners will protect users from tampering, ensuring equal access and maintaining a neutral base layer.
Luis Bezzenberger, Product Manager at Brainbot said: “We are incredibly excited to introduce a protocol that can solve one of the most rampant problems in today's decentralized finance landscape. Gnosis Chain is home to one of the most vibrant Web3 communities and by joining forces, we can strengthen the Web3 ecosystem and provide Gnosis Chain users with a smooth, fair and more profitable trading experience.”
Philippe Schommers, head of infrastructure at Gnosis said: “We are delighted to join Shutter's mission to build a Web3 ecosystem that is transparent, equal and secure for everyone. By integrating Shutter, we believe we are empowered to provide the best user experience to our developers and builders and are dedicated to continuing to demonstrate the sustained growth of our ecosystem through strong integrations and partnerships with promising protocols, dApps and projects.”
Martin Köppelmann, co-founder of Gnosis said: “Safety and justice remain at the core of everything we do. Integrating with Shutter not only strengthens the resilience and neutrality of our network, but will also establish an industry gold standard for strengthening safeguards against third-party extraction of value from network users, leveling the playing field. game for the future of Web3 and decentralized finance.”
Shutter will launch on July 11, 2024, the last day of the Ethereum Community Conference (EthCC), the largest annual European Ethereum event focused on technology and community.
About the shutter
Shutter is free, open source software designed to protect the crypto community from those who manipulate the blockchain for their own benefit. Using threshold encryption, Shutter ensures base layer neutrality, information symmetry, and accessibility in commerce, voting, and gaming.
About brain robot
Brainbot GmbH specializes in the development, distribution, licensing and operation of software, as well as offering a wide range of related services. As the lead developer behind Shutter, Brainbot plays a critical role in advancing blockchain technology.
About gnosis
Gnosis is developed by a world-class team of leading forces in blockchain and payments. The Chain of Gnosis is designed with community ownership, resilience, and credible neutrality at its core. The highly decentralized network is protected by more than 200,000 validators and more than 2,000 nodes, in 70 countries and 5 continents.
Contactwachsman[email protected]
This article was originally published on Chainwire.
