EIP-8105 proposes a scheme-agnostic encrypted mempool for Ethereum, designed to hide transaction payloads until after inclusion and reduce harmful MEV.
Sandwich attacks cost Ethereum users an estimated $60 million per year. Transactions broadcast to the public mempool are publicly visible before inclusion, which gives MEV bots the ability to affect the order of transactions and insert their own for profit. This problem has persisted on some level in spite of years of discussion and various out-of-protocol mitigation attempts.
Encrypting mempool transactions would be one of the most compelling solutions to prevent MEV. While this idea has been actively discussed for years, it has not yet been implemented at the protocol level. In our earlier research, we examined several proposals based on threshold-encryption, including Shutter, Batched Threshold Encryption, and Flash Freezing Flash Boys. In this article, we turn to a meta proposal titled “Universal Enshrined Encrypted Mempool (EIP-8105)“.
Universal Enshrined Encrypted Mempool, also known as EIP-8105, is a scheme-agnostic encrypted mempool design, which means it can support a wide range of encryption methods, including threshold encryption, MPC committees, TEEs, delay encryption, and fully homomorphic encryption. A new system contract on the execution layer, called the key provider registry, is planned to facilitate this flexible design. It would allow any account to register as a key provider that holds and reveals decryption keys using their own preferred encryption technology.
