BEP-547: Encrypted Mempool for Binance Smart Chain
Introduce a threshold encrypted mempool to the Binance Smart Chain (BSC) to eliminate malicious MEV like front-running and strengthen real-time censorship resistance.
How it Works:
- Users submit encrypted transactions.
- Validators commit to a transaction order before decryption.
- A threshold decryption is then performed by either:
- Binance Chain validators, or
- A dedicated Keyper set governed by Shutter DAO 0x36.
- Decryption happens only after ordering, preventing anyone from exploiting transaction content.
Technology:
- Built on Shutter’s proven cryptographic architecture (live on Gnosis Chain).
- Uses threshold encryption, not alternatives like TEEs or FHE, due to its strong decentralization and efficiency.
- Compatible with Erigon v3, enabling opt-in validator support with no disruption to regular transactions.
Motivation:
- Backed by the BNB Good Will Alliance, the goal is to restore fairness in transaction ordering and protect users from malicious MEV (like front-running and sandwich attacks).
- Prepares BSC for future compliance by reducing MEV-related regulatory risk.
Benefits:
- Fairness: Prevents malicious reordering and private exploitation.
- Censorship Resistance: Keeps transaction contents hidden until committed.
- Validator Choice: Fully opt-in, supports legacy and encrypted txs in parallel.
- Future-Proofing: Aligns with Ethereum’s PBS direction and cross-chain innovations.
Performance:
- Minimal computational overhead.
- Slight increase in latency for encrypted txs, but scales with validator participation.
- Network throughput remains unaffected.
Roadmap:
- Testnet Phases:
- Validator opt-in, stress testing.
- Mainnet Pilot:
- Optional feature rollout.
- Full Rollout:
- Based on community feedback and stability.
Partnership: Jointly developed by brainbot, Erigon, and NodeReal, with each bringing core infrastructure, client development, and deployment expertise.