Shutter Network: Private Transactions from Threshold Cryptography

With the emergence of DeFi, attacks based on re-ordering transactions have become an essential problem for public blockchains. Such attacks include front-running or sandwiching transactions, where the adversary places transactions at a particular place within a block to influence a financial asset’s market price. In the Ethereum space, the value extracted by such attacks is often referred to as miner/maximal extractable value (MEV), which to date is estimated to have reached a value of more than USD 1.3B. A promising approach to protect against MEV is to hide the transaction data so block proposers cannot choose the order in which transactions are executed based on the transactions’ content. This paper describes the cryptographic protocol underlying the Shutter network. Shutter has been available as an open-source project since the end of 2021 and has been running in production since Oct. 2022.