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Mainz, Germany, June 19th, 2024, Chainwire

Shutter, an open-source protocol initially developed by brainbot and focused on preventing malicious maximal extractable value (MEV) attacks, today announced the launch of a new anti-front running solution using mempool encryption to combat the exploitation of nearly US$900 million taken from crypto trades annually. Partnering with Gnosis, the architects of the fully EVM-compatible Layer-1 Gnosis Chain, Shutter will be integrated into the Gnosis Chain to protect end-user transactions from front running and sandwich attacks, shielding traders from malicious MEV activities that can result in significant monetary loss and unfair influence.

Setting a New Standard for MEV Protection with Deep Chain Integration

MEV attacks are transactions by attackers that manipulate the outcome of the target transaction within a blockchain that maximizes financial gain for malicious actors at the expense of traders and end-users. Common malicious MEV activities include sandwich attacks, where an attacker places their transactions both before and after a victims transaction. This manipulates the token price to the attackers advantage, typically driving up the price of the token for the victim.

Despite the growing incidences of such attacks, existing solutions to this problem often fall short of holistically addressing the complexities of MEV attacks. Many traders still remain unaware that they are victims of exploitation until significant losses are incurred. Even once they are made aware, victims have to take extra steps to protect themselves, often relying on centralized systems that can still censor and extract value.

To address this gap, Shutter provides malicious MEV protection and a layer of censorship resistance via the threshold encrypted mempool built into the Gnosis Chain. Distinguishing itself from existing methods of tackling MEV attacks, Shutter integrates its encryption protocol directly into blockchain networks, preventing manipulators from exploiting transactions. This deep integration means block producers must commit to the inclusion and order of transactions while they are still encrypted, making it almost impossible to front run or censor. This also ensures that traders are protected from monetary losses without needing additional measures.

Tackling Unchecked Spread of Malicious MEV Attacks with Decentralized Encryption for Fair Trading

Shutters unique approach is exceptionally critical in todays maturing Web3 landscape where hundreds of millions of dollars are stolen each year on Ethereum alone through MEV tactics. These attacks exploit the public nature of blockchains and remain largely unchecked, consequently reducing market efficiency, diminishing trust in the system, and making it fundamentally unfair.

Shutters encrypted mempool also mitigates real-time censorship, ensuring transactions remain private until included in a block. This prevents malicious actors from selectively excluding transactions, reinforcing the core principles of public blockchainsopenness, neutrality, and accessibility. By increasing information symmetry through Shutters encryption approach, the playing field is leveled. At the same time, the integrity of public blockchains is preserved, providing greater confidence for retail and large institutional investors typically deterred by rampant front running in decentralized finance (DeFi) to enter the space, attracting a broader range of participants in the long run.

A Strategic Integration

Gnosis Chains integration of Shutter directly tackles the rampant issue of malicious MEV through preventive measures as opposed to many other blockchains that continue to struggle to resolve such growing issues, marking a significant milestone for not just the Shutter community, but the industry at large. Charting towards the shared vision of a more equitable blockchain ecosystem, Gnosis Chains relentless focus on decentralization and accessibility harmonizes with Shutters efforts to address contemporary industry challenges impeding the adoption of Web3. Ultimately, Shutter will play a vital role in encouraging safer crypto trades, increasing censorship resistance, and preventing value leakage.

A Vision for the Future

This integration is one of many in the pipeline for Shutter that helps build momentum toward combating malicious MEV attacks across the Ethereum ecosystem. Collectively, Shutter and its partners will shield the users from manipulation, ensuring equitable access and maintaining a neutral base layer.

Luis Bezzenberger, Product Manager at brainbot said: Were incredibly excited to unveil a protocol that can solve one of the most rampant issues in todays decentralized finance landscape. Gnosis Chain is home to one of the most vibrant communities in Web3 and by joining forces, we can strengthen the Web3 ecosystem and provide Gnosis Chains users with a seamless, fair and more profitable trading experience.

Philippe Schommers, Head of Infrastructure at Gnosis said: Were thrilled to join Shutters mission of building a Web3 ecosystem that is transparent, equal, and secure for all. Integrating Shutter, we believe we are empowered to provide the best user experience for our developers and builders and we are dedicated to continuing demonstrating our sustained ecosystem growth through robust integrations and partnerships with promising protocols, dApps, and projects.

Martin Kppelmann, Co-Founder of Gnosis said: Security and fairness remain at the core of everything we do. The integration with Shutter not only bolsters our network resilience and neutrality but will also set an industry gold standard for fortifying safeguards against third-party value extraction from network users, leveling the playing field for the future of Web3 and decentralized finance.

Shutter will be launched on July 11, 2024 on the final day of the Ethereum Community Conference (EthCC), the largest annual European Ethereum event focused on technology and community.

About Shutter

Shutter is a free open-source software designed to protect the crypto community from those manipulating the blockchain for their own gain. Using threshold encryption, Shutter ensures base layer neutrality, information symmetry, and accessibility in trading, voting, and gaming.

About brainbot

brainbot GmbH specializes in the development, distribution, licensing, and operation of software, alongside providing a wide range of related services. As the core developer behind Shutter, brainbot plays a pivotal role in advancing blockchain technology.

About Gnosis

Gnosis is developed by a world-class team of leading forces in blockchain and payments. The Gnosis Chain is architected with community ownership, resilience, and credible neutrality at its core. The highly decentralized network is secured by 200K+ validators and 2K+ nodes, across 70 countries and 5 continents.

Wachsman[emailprotected]

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Shutter Launches First Threshold Encrypted Mempool for Ethereum-like Networks on Gnosis Chain to Combat US$900 ... - Crypto Briefing

The FBI unexpectedly cancelled two briefings about encryption on Monday, which were scheduled for later this week, without offering any explanation.

The briefings were the second part of the FBI's series for Capitol Hill staffers titled "priority topics," and would have focused on how encryption has created challenges for the federal bureau when investigatingviolent crimes against children and transnational organized crime, per Politico. The first in the series was held last month, and focused on the fentanyl crisis.

The two briefings, scheduled for Tuesday and Thursday, have been indefinitely delayed but no further details on the reason for the cancellation have been released. The FBI said it hopes to reschedule the briefings at a later date.

Regrettably, due to circumstances outside of the FBIs control, the briefings on the FBIs Efforts on Warrant-Proof Encryption which were originally scheduled for June 18th and June 20th, have been unexpectedly postponed, an email announcing the cancellation said. The FBI sees tremendous value in informing Congress on various issues and especially recognizes the importance of this particular topic, so we deeply apologize for any inconvenience to those who were planning to participate.

The FBI has urged tech companies like Apple to provide a backdoor for law enforcement officers to legally access encrypted data if they have a search warrant. But tech companies have expressed concern that adding a backdoor on social media sites could make private data more easily accessible for hackers and other cybercriminals.

The FBI said that encryption software used in apps like Signal have made it harder to monitor communications on those apps by criminals, including terrorists and child sex traffickers.

Misty Severi is an evening news reporter for Just the News. You canfollow her on Xfor more coverage.

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FBI suddenly cancels Capitol Hill briefing on warrant-proof encryption - Just The News

The European Union (EU) is seeking to scan your messages, including encrypted ones, to detect and stop child sex abuse material (CSAM). The proposed chat control legislation will undergo a vote in the EU Council later today. If the controversial new legislation passes this voting round, it will move forward in the Councils law-making process.

In this AI-powered digital world, child safety is one of the major concerns for lawmakers and parents alike. While internet platforms have placed various rules and regulations to make children safer online, these systems arent foolproof. The EU believes it can develop a more effective measurescanning private messages to prevent the spread of CSAM.

Introduced in May 2022, this controversial regulation aims to implement an upload moderation system. Service providers must install a vetted monitoring technology that scans all your digital messages. It will check for potential child sex abuse material in images, videos, and links you share. Users will be asked to allow permission to scan their messages. You cannot share media files and links if you dont allow permission.

Interestingly, the European lawmakers who drafted this regulation made arguments both in favor of and against end-to-end encryption (E2EE). The proposed law says E2EE is a necessary means of protecting fundamental rights. However, it also states that encrypting messages could inadvertently make messaging apps secure zones where child sexual abuse material can be shared or disseminated.

The regulation doesnt ask service providers to lift E2EE in Europe. Instead, it wants a backdoor that allows scanning of the message before it is encrypted. This new moderation system leaves messages open for scanning without compromising the layer of privacy offered by end-to-end encryption. E2EE doesnt allow anyone apart from the sender and receiver to read the message, not even the messaging platform and governments.

Before the regulation goes into the voting round later today, several privacy advocates and industry players have expressed concerns over it. Organizationsincluding theElectronic Frontier Foundation, theCenter for Democracy & Technology, and Mozilla have signed a joint statement urging the EU to reject the law. Many European Parliament members have also opposed the proposed law.

Encrypted messaging platform Signal plans to exit Europe if this law is passed. We will leave the EU market rather than undermine our privacy guarantees, said Signal President Meredith Whittaker. This proposalif passed and enforced against uswould require us to make this choice. Its surveillance wine in safety bottles. It remains to be seen what the EU Council decides. It wont be a long wait, so stay tuned.

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EU plans to scan your messages, including encrypted ones - Android Headlines

Mainz, Germany, June 19th, 2024, Chainwire

Shutter, an open-source protocol initially developed by brainbot and focused on preventing malicious maximal extractable value (MEV) attacks, today announced the launch of a new anti-front running solution using mempool encryption to combat the exploitation of nearly US$900 million taken from crypto trades annually. Partnering with Gnosis, the architects of the fully EVM-compatible Layer-1 Gnosis Chain, Shutter will be integrated into the Gnosis Chain to protect end-user transactions from front running and sandwich attacks, shielding traders from malicious MEV activities that can result in significant monetary loss and unfair influence.

Setting a New Standard for MEV Protection with Deep Chain Integration

MEV attacks are transactions by attackers that manipulate the outcome of the target transaction within a blockchain that maximizes financial gain for malicious actors at the expense of traders and end-users. Common malicious MEV activities include sandwich attacks, where an attacker places their transactions both before and after a victim's transaction. This manipulates the token price to the attackers advantage, typically driving up the price of the token for the victim.

Despite the growing incidences of such attacks, existing solutions to this problem often fall short of holistically addressing the complexities of MEV attacks. Many traders still remain unaware that they are victims of exploitation until significant losses are incurred. Even once they are made aware, victims have to take extra steps to protect themselves, often relying on centralized systems that can still censor and extract value.

To address this gap, Shutter provides malicious MEV protection and a layer of censorship resistance via the threshold encrypted mempool built into the Gnosis Chain. Distinguishing itself from existing methods of tackling MEV attacks, Shutter integrates its encryption protocol directly into blockchain networks, preventing manipulators from exploiting transactions. This deep integration means block producers must commit to the inclusion and order of transactions while they are still encrypted, making it almost impossible to front run or censor. This also ensures that traders are protected from monetary losses without needing additional measures.

Tackling Unchecked Spread of Malicious MEV Attacks with Decentralized Encryption for Fair Trading

Shutters unique approach is exceptionally critical in todays maturing Web3 landscape where hundreds of millions of dollars are stolen each year on alone through MEV tactics. These attacks exploit the public nature of blockchains and remain largely unchecked, consequently reducing market efficiency, diminishing trust in the system, and making it fundamentally unfair.

Shutter's encrypted mempool also mitigates real-time censorship, ensuring transactions remain private until included in a block. This prevents malicious actors from selectively excluding transactions, reinforcing the core principles of public blockchainsopenness, neutrality, and accessibility. By increasing information symmetry through Shutters encryption approach, the playing field is leveled. At the same time, the integrity of public blockchains is preserved, providing greater confidence for retail and large institutional investors typically deterred by rampant front running in decentralized finance (DeFi) to enter the space, attracting a broader range of participants in the long run.

A Strategic Integration

Gnosis Chains integration of Shutter directly tackles the rampant issue of malicious MEV through preventive measures as opposed to many other blockchains that continue to struggle to resolve such growing issues, marking a significant milestone for not just the Shutter community, but the industry at large. Charting towards the shared vision of a more equitable blockchain ecosystem, Gnosis Chains relentless focus on decentralization and accessibility harmonizes with Shutters efforts to address contemporary industry challenges impeding the adoption of Web3. Ultimately, Shutter will play a vital role in encouraging safer crypto trades, increasing censorship resistance, and preventing value leakage.

A Vision for the Future

This integration is one of many in the pipeline for Shutter that helps build momentum toward combating malicious MEV attacks across the Ethereum ecosystem. Collectively, Shutter and its partners will shield the users from manipulation, ensuring equitable access and maintaining a neutral base layer.

About Shutter

Shutter is a free open-source software designed to protect the crypto community from those manipulating the blockchain for their own gain. Using threshold encryption, Shutter ensures base layer neutrality, information symmetry, and accessibility in trading, voting, and gaming.

About brainbot

brainbot GmbH specializes in the development, distribution, licensing, and operation of software, alongside providing a wide range of related services. As the core developer behind Shutter, brainbot plays a pivotal role in advancing blockchain technology.

About Gnosis

Gnosis is developed by a world-class team of leading forces in blockchain and payments. The Gnosis Chain is architected with community ownership, resilience, and credible neutrality at its core. The highly decentralized network is secured by 200K+ validators and 2K+ nodes, across 70 countries and 5 continents.

ContactWachsmanshutter@wachsman.com

This article was originally published on Chainwire

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Shutter Launches First Threshold Encrypted Mempool for Ethereum-like Networks on Gnosis Chain to Combat US$900 ... - Investing.com