Introduction
In the past few days, brainbot has received feedback from members of Shutter DAO 0x36 and the broader ecosystem regarding the future of the Shutter project.
We note that significant differences exist.
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Some members wish to focus on long term impact and profit by pursuing encrypted mempools on Ethereum L1
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Other members wish to focus on immediate opportunities for revenue generation via the Shutter API
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Other members wish to double down on cryptography research, and still others wish to launch a protocol with no/little maintenance costs
We believe that an open and constructive discussion would benefit all Shutter ecosystem actors, including brainbot and Shutter DAO 0x36.
Among other benefits, it would help Shutter DAO 0x36 right-size the grant(s) to brainbot and extend its runway (if it so wishes).
In order to kickstart the conversation, brainbot has outlined 6 potential options. The Shutter ecosystem may wish to prioritise one, a combination, or none of these options.
Please feel free to share other options, comments and questions. We look forward to the discussion!
Options
1. Encrypted Mempool
Vitalik’s vision for the future of Ethereum included an encrypted mempool as one key component. This would help address the rising threat of censorship and MEV extraction through builder centralization on Ethereum. Shutter already proves its capability with a live deployment on Gnosis Chain (probably the first threshold encrypted mempool on a mainnet in general) and has a clear roadmap toward integrating encrypted mempool functionality into Ethereum’s transaction pipeline (by leveraging proposer commitments and later FOCIL). By positioning itself as a key player in the “holy trinity” of censorship resistance—alongside ePBS and FOCIL—Shutter can capture a massive market share where the payoff, in both security and financial terms, is immense. This strategy leverages real market demand for decentralized, censorship-proof transaction processing and promises a strong competitive edge.
2. Shutter API – Focus on Encryption/Decryption
The Shutter API offers seamless access to robust threshold encryption and decryption services, making it easy for developers to integrate privacy features like commit-reveal mechanisms and time-lock encryption. This strategy leverages Shutter’s core competence, addressing the immediate demand for secure, censorship-resistant applications. By focusing on encryption/decryption, Shutter can quickly capture market share in gaming, decentralized governance, finance, and more.
3. Shutter API – MPC/Threshold Crypto-Based Custody/Bridging Use Cases
This approach extends the API to integrate threshold cryptography and multi-party computation (MPC) for secure custody and bridging across blockchains (see NEAR intents). It targets broader applications such as decentralized finance and cross-chain asset management, opening new revenue streams despite facing tougher competition from established players. By combining privacy with advanced custody solutions, Shutter can position itself as a key enabler in the evolving blockchain ecosystem.
4. Decentralized MEV Solution
Current solutions like Flashbots Protect mitigate MEV extraction but still suffer from elements of centralization that threaten market fairness and neutrality. Shutter can develop a private mempool alternative that offers a more decentralized approach, ensuring that transactions remain private until inclusion and eliminating exploitable front-running opportunities. This approach not only safeguards user interests but also positions Shutter as a pioneer in creating a truly trustless and censorship-resistant ecosystem. With MEV extraction representing a multi-billion dollar problem in blockchain markets, a robust decentralized solution could unlock tremendous market potential and redefine transaction security standards.
5. Threshold KMS (for FHE)
The advent of fully homomorphic encryption (FHE) marks the next phase of privacy for Ethereum and public blockchains. But for FHE to work, one still needs decryption (to use the outputs) and threshold key management. Shutter’s core strength - its threshold encryption DKG - positions it perfectly to offer a Threshold KMS that bridges this gap, especially as projects like Zama and Enclave are hinting at similar needs (Zama already mentions a threshold KMS as “coming soon” on its website). Integrating Shutter’s KMS with FHE-based systems can unlock the holy grail of privacy: full privacy combined with auditability and transparency. The market potential here is significant as demand surges for secure, programmable cryptography solutions across finance, governance, and beyond.
6. In-House MPC/Threshold-FHE System
Shutter’s existing threshold encryption can be the foundation for a more advanced system that computes over encrypted data, aligning with the emerging paradigm of programmable cryptography. By developing its own MPC/threshold-FHE framework, Shutter can address the dual challenge of full privacy and verifiable computation on public blockchains. Although the technical hurdles are significant and the competition from projects like Zama and Nillion is fierce, success in this area would position Shutter at the forefront of a rapidly expanding market. This innovation could drive new applications across industries that demand uncompromised data security and transparency.