Quick Read
Shutter’s Threshold Encrypted Mempool: A Game-Changer Solution to Combat US$900M Crypto Trading Problem on Ethereum-like Networks
The crypto trading market on Ethereum-like networks has witnessed a significant surge in recent years, with daily trading volumes frequently exceeding US$1 billion. However, this growth comes with its own set of challenges. One major issue is the high gas fees and network congestion, which can make trading on these networks cost-prohibitive for smaller traders and delay transactions for everyone. These issues have been particularly acute on Gnosis Chain, where the average gas fee has reached as high as US$20, leading to a
US$900 million monthly trading volume opportunity
being left untapped.
Shutter, a decentralized infrastructure platform, aims to address these issues with its novel
Threshold Encrypted Mempool
solution. The mempool is the pool of unconfirmed transactions waiting to be processed by the network. By implementing encryption and threshold decryption, Shutter can significantly reduce the size of the mempool, allowing for faster transaction processing and lower gas fees.
Threshold Encryption
Threshold encryption is a cryptographic technique that allows multiple parties to encrypt and decrypt data without revealing their individual keys. In the context of Shutter’s mempool, this means that transactions can be encrypted by multiple parties before being added to the pool. This reduces the overall size of the mempool and makes it easier for nodes to process incoming transactions.
Threshold Decryption
When it’s time for a transaction to be processed, Shutter uses the threshold decryption mechanism. This involves gathering a sufficient number of nodes (called a “quorum”) to collectively decrypt and broadcast the transaction. The quorum size is determined dynamically based on network conditions, ensuring that transactions are processed efficiently while maintaining decentralization.
Benefits and Implications
Shutter’s Threshold Encrypted Mempool offers several benefits. It allows for faster transaction processing, which is crucial in a high-volume trading environment like Gnosis Chain. By reducing gas fees, it makes the network more accessible to smaller traders and encourages greater participation in decentralized finance (DeFi) applications. Additionally, by maintaining decentralization while reducing mempool size, Shutter addresses a key concern for those who prioritize security and censorship resistance.
Conclusion
With Shutter’s Threshold Encrypted Mempool, we are witnessing a significant leap forward in the scalability and affordability of decentralized trading on Ethereum-like networks. This innovative solution not only improves the user experience for traders but also unlocks US$900 million in monthly trading volume previously left untapped. As decentralized finance continues to evolve and grow, solutions like Shutter’s Threshold Encrypted Mempool will play a crucial role in ensuring its long-term success.
I. Introduction
Explanation of the growing problem in crypto trading on Ethereum-like networks: High gas fees, slow transactions, and scalability issues have become major obstacles in the crypto trading community, particularly on Ethereum-like networks.
Description of the current state of Ethereum’s network and its impact on users
With Ethereum’s popularity soaring, the network has been struggling to keep up with the increasing demand. This results in skyrocketing gas fees, which can be a significant barrier for traders looking to execute smaller transactions or participate in DeFi protocols. Moreover, the slow transaction speeds can lead to missed opportunities and frustration. These issues are further compounded by scalability problems, which make it challenging for the network to process a high volume of transactions efficiently.
Introducing Shutter, the decentralized trading infrastructure platform, and its mission to address these issues
In response to these challenges, Shutter, a decentralized trading infrastructure platform, is on a mission to revolutionize the crypto trading experience.
Overview of Shutter’s background and team
With a strong belief in the potential of decentralized finance (DeFi) and a commitment to solving the problems plaguing Ethereum-like networks, Shutter was born out of a need for a more efficient and accessible trading solution. The team behind Shutter comprises seasoned industry professionals with extensive experience in blockchain development, decentralized finance, and high-frequency trading.
Description of Shutter’s vision and goals
Shutter’s vision is to create a decentralized trading infrastructure that addresses the challenges of high gas fees, slow transactions, and scalability issues. By providing a more accessible, efficient, and cost-effective trading environment, Shutter aims to empower traders and investors, allowing them to fully realize the potential of decentralized finance.
Announcement of Shutter launching its first Threshold Encrypted Mempool (TEM) on Gnosis Chain
Importance of Mempools in crypto trading and their current limitations: In the context of crypto trading, Mempools (Memory Pools) serve as a collection of unconfirmed transactions waiting to be included in the next block. They play a crucial role in determining the order in which transactions are processed and confirmed on the network. However, current Mempools have several limitations that contribute to the aforementioned challenges, such as high gas fees and slow transaction speeds.
Explanation of Shutter’s Threshold Encrypted Mempool solution and its benefits
To address these limitations, Shutter has developed the Threshold Encrypted Mempool (TEM). This innovative solution aims to provide traders with a more efficient and cost-effective method for managing their transactions in the Mempool. By implementing threshold encryption, TEM ensures that users can securely submit and manage their transactions without revealing sensitive information to miners or other external entities. As a result, Shutter’s TEM is expected to help reduce the overall gas fees and improve transaction speeds on Ethereum-like networks, ultimately providing traders with a more accessible and efficient trading experience.
Understanding the Crypto Trading Problem on Ethereum-like Networks
Detailed explanation of gas fees and their impact on crypto trading transactions
Gas fees, a fundamental concept in the Ethereum network and other decentralized finance (DeFi) platforms, represent the cost required to execute a specific transaction or contract call. This fee is paid to the miner who processes the transaction and includes the computational power necessary to validate and record it on the blockchain.
Definition and calculation of gas fees
The unit of measurement for gas fees is Gas, which represents the amount of computational effort required. The actual fee paid by users is measured in Ether (ETH), the native cryptocurrency of the Ethereum network. Gas fees fluctuate depending on network congestion, with peak periods leading to significantly higher costs. For instance, gas prices during the 2021 DeFi boom reached unprecedented highs of up to $70 per gas unit.
Examples of recent high gas fees incidents and their effects on traders
Such high gas fees can have substantial negative impacts on traders. For instance, they may discourage users from executing certain transactions due to the prohibitive cost. Additionally, high gas fees can lead to a significant reduction in overall trading volumes as traders may opt for alternative networks with lower costs or wait for the congestion to dissipate before engaging in transactions.
Discussion of the slow transaction speeds issue in crypto trading
Transaction speeds are another critical factor that can impact the user experience of traders on Ethereum-like networks.
Analysis of current transaction speeds and their impact on user experience
Currently, Ethereum and similar networks can process roughly 15 transactions per second (TPS), lagging far behind traditional financial systems that process thousands of transactions per second. Slow transaction speeds can result in frustration for traders, as they may be unable to execute timely trades or settle transactions efficiently. This can lead to missed opportunities and lost revenue.
Consequences for traders trying to execute timely trades or settle transactions
Traders who rely on quick and efficient transaction processing to make a profit may struggle with the slow speeds of Ethereum-like networks. For example, during high volatility market conditions, rapid price movements can create significant opportunities for profit – but if a trader cannot execute their transactions quickly enough due to slow transaction speeds or high gas fees, they may miss out on potential gains. Additionally, traders relying on automated systems, such as decentralized exchanges (DEXs), may face significant delays in their trades due to network congestion.
Overview of scalability issues and their impact on Ethereum-like networks’ growth
Scalability is a fundamental challenge for Ethereum-like networks, as they aim to accommodate the growing demand for decentralized finance and other blockchain applications.
Explanation of how scalability affects transaction processing and network congestion
Scalability issues can manifest in various ways, including increased transaction processing times and higher gas fees. This is because the network’s ability to process transactions effectively is limited by its current infrastructure. As more users join the network and engage in increasingly complex transactions, congestion can occur, leading to slower speeds and higher costs for all users.
Discussion of current solutions and their limitations
Efforts are being made to improve scalability on Ethereum-like networks, including the implementation of layer 2 solutions like Optimistic Rollups and Plasma. These solutions can help process transactions off-chain and then settle them on the main Ethereum blockchain, reducing overall network congestion and improving transaction speeds. However, these solutions come with their own limitations, such as the need for trust in certain intermediaries or additional complexities that may impact user experience.
I Introducing Shutter: A Decentralized Trading Infrastructure Platform
Overview of Shutter’s platform and its architecture:
Shutter is an innovative decentralized trading infrastructure platform designed to revolutionize the way cryptocurrency traders operate. Shutter’s architecture is built on a modular design, which allows it to seamlessly integrate with various Layer 1 and 2 scaling solutions, ensuring the platform remains adaptable and efficient. Shutter operates as a decentralized network where users can connect, trade, and execute transactions directly with each other, bypassing the need for intermediaries.
Discussion of Shutter’s benefits for traders:
Faster transaction processing:
Shutter’s decentralized nature and innovative design enable it to offer faster transaction processing, reducing the wait time for confirmations that is often associated with traditional trading platforms. This not only enhances user experience but also ensures traders can capitalize on market opportunities as they arise.
Lower costs (gas fees):
Another significant advantage of Shutter’s decentralized architecture is the potential for lower costs (gas fees). By eliminating intermediaries and enabling direct peer-to-peer transactions, Shutter aims to minimize the fees associated with trading activities.
Enhanced security and privacy through the use of Threshold Encryption:
Shutter prioritizes security and privacy for its users. The platform employs Threshold Encryption, a state-of-the-art encryption technique that safeguards users’ information by ensuring that no single entity holds the decryption key. This adds an extra layer of protection against potential threats, giving traders peace of mind when using the platform.
Description of Shutter’s governance structure and its community involvement:
Explanation of how the platform is governed by its users:
What sets Shutter apart from other trading platforms is its community-driven governance structure. The platform empowers its users to participate in decision-making processes and shape the future of Shutter. This not only fosters a sense of ownership but also ensures that the platform remains responsive to the evolving needs of the cryptocurrency trading community.
Discussion of Shutter’s commitment to transparency and decentralization:
Lastly, Shutter is committed to transparency and decentralization. The platform’s open-source codebase is accessible to all users, enabling community members to review, contribute, and collaborate on improvements. This fosters trust among users and reinforces the platform’s decentralized ethos.
Threshold Encrypted Mempool (TEM): A Game-Changer for Ethereum-like Networks
Explanation of the role of mempools in crypto trading and their limitations
(Definition and description of a mempool): A mempool is a data structure used in cryptocurrency networks to temporarily store transactions before they get mined and added to the blockchain. It acts as a waiting room where users can submit their transactions, which are then broadcasted to the network nodes. Once a new block is mined and added to the blockchain, the transactions in the mempool that meet certain criteria get included in the new block.
(Discussion of the current challenges mempools face): Despite their crucial role, mempools currently face several limitations. High gas fees and slow transaction speeds are major issues. The current mempool design leads to bidding wars for the next block, where users pay increasingly higher gas fees to prioritize their transactions. This results in an unequal playing field and unfair advantage for those who can afford higher transaction fees. Moreover, mempools also struggle with scalability issues, making it difficult to process a high volume of transactions efficiently.
Introduction to Shutter’s Threshold Encrypted Mempool (TEM) solution
(Description of how TEM works): Threshold Encrypted Mempool (TEM), developed by Shutter, is designed to address these challenges. TEM introduces a new form of encryption called threshold encryption that allows multiple parties to collaboratively encrypt and decrypt data without revealing their individual keys or private information. Transactions in TEM are encrypted using a threshold encryption scheme, ensuring that each transaction is securely stored without revealing sensitive data to other participants.
(Comparison with other existing mempool solutions): Compared to traditional mempools, TEM provides several advantages. Its threshold encryption feature enhances the security and privacy of transactions by ensuring that sensitive data is not exposed during the transaction processing phase. It also leads to improved scalability, as more nodes can securely process transactions in parallel without revealing their private keys. Furthermore, TEM aims to address the current high gas fees by enabling more efficient transaction processing, reducing the overall network congestion.
Discussion on the implications of TEM for Ethereum-like networks and their users
(Improved transaction processing speed): With TEM, Ethereum-like networks can expect significantly improved transaction processing speeds as more nodes can collaboratively process transactions, reducing the dependency on a single miner for block creation.
(Reduced gas fees for traders): The enhanced scalability and transaction processing efficiency provided by TEM are expected to lead to reduced gas fees for traders, making it more accessible and affordable for a broader range of users.
(Enhanced privacy and security features): TEM’s encryption scheme also ensures that transaction details are kept private, providing an added layer of security for users.
Roadmap and timeline for the implementation of TEM on Gnosis Chain
(Development progress updates): The development team at Shutter has been actively working on implementing TEM on Gnosis Chain, with regular updates and progress reports shared on their link account.
(Testing phases and expected launch date): The team is currently undergoing rigorous testing to ensure the stability and security of TEM on Gnosis Chain. An estimated launch date for the public implementation has not yet been announced but is expected soon based on recent development updates.
(Plans for further integrations with other Ethereum-like networks): Once successfully implemented on Gnosis Chain, the team plans to explore further integrations of TEM with other popular Ethereum-like networks, such as Polygon (Matic) and Binance Smart Chain, to extend its benefits to a wider user base.
Conclusion
Recap of the crypto trading problem on Ethereum-like networks and its impact on users: The surge in popularity of decentralized finance (DeFi) applications on Ethereum-like networks has led to numerous challenges for crypto traders. High gas fees and network congestion can result in slow transaction processing times, leading to missed opportunities or increased risks. Moreover, the lack of privacy and security for users’ trading data is a significant concern.
Introduction of Shutter as a solution to address these challenges through its decentralized trading infrastructure and Threshold Encrypted Mempool technology: Shutter, a new decentralized trading platform, aims to tackle these issues head-on. By leveraging its innovative decentralized trading infrastructure and Threshold Encrypted Mempool technology, Shutter offers users faster transaction processing, lower fees, enhanced privacy, and improved security.
Significance of Shutter’s launch on Gnosis Chain and its potential implications for the broader crypto ecosystem:
Shutter’s launch on Gnosis Chain is particularly noteworthy, as it marks a significant step forward for decentralized trading on Ethereum-like networks. By providing a more efficient and secure trading solution, Shutter has the potential to attract a large user base, driving increased adoption of decentralized finance applications on Gnosis Chain. Furthermore, its success could inspire other projects to adopt similar technologies and innovations, leading to a more competitive and robust crypto ecosystem.
Encouragement for users, developers, and other stakeholders to engage with Shutter’s platform and contribute to its growth and success: We invite crypto enthusiasts, traders, developers, and investors to explore the Shutter platform and join our growing community. By engaging with Shutter, you’ll have the opportunity to benefit from faster transaction processing, lower fees, enhanced privacy, and improved security. Additionally, by contributing to the platform’s development, you can help shape its future and create a more robust decentralized trading ecosystem for everyone.
E. Call-to-action for interested parties to join Shutter’s community, follow its social media channels, and explore its documentation and resources:
If you’re excited about the potential of decentralized trading and want to be part of a community that is pushing the boundaries of blockchain technology, join Shutter today. Follow us on our link, link, and link channels to stay updated on the latest news, announcements, and developments. Moreover, explore our link and link to learn more about our platform, technology, and roadmap. Together, we can create a more efficient, secure, and privacy-focused decentralized trading ecosystem that benefits everyone in the crypto community.
