Paper 2023/1612
Mitigating MEV via Multiparty Delay Encryption
Abstract
Ethereum is a decentralized and permissionless network offering several attractive features. However, block proposers in Ethereum can exploit the order of transactions to extract value. This phenomenon, known as $maximal$ $extractable$ $value$ (MEV), not only disrupts the optimal functioning of different protocols but also undermines the stability of the underlying consensus mechanism. Furthermore, current block production architecture allows transaction censorship that compromises credible neutrality, a fundamental principle of Ethereum’s design philosophy. In this work, we present a novel $mempool$ $encryption$ scheme to alleviate the censorship and MEV problem by separating transaction inclusion and execution, keeping transactions encrypted before execution. We formulate the notion of $multiparty$ $delay$ $encryption$ (MDE) and construct a practical MDE scheme based on time-lock puzzles. Our method excels in scalability (in terms of transaction decryption), efficiency (minimizing communication and storage overhead), and security (with minimal trust assumptions). To demonstrate the effectiveness of our MDE scheme, we have implemented it on a local Ethereum testnet and prove its security under the presence of only one honest attestation aggregator per Ethereum slot.
Note: This version adds the adaptive security of the scheme and elaborates on the use cases.
Metadata
- Available format(s)
-
PDF
- Category
- Cryptographic protocols
- Publication info
- Preprint.
- Keywords
- Maximal Extractable ValueTime-lock PuzzleMultiparty Computation
- Contact author(s)
-
khajepour amirhossein @ gmail com
akbar066 @ umn edu
mohammad @ scroll io
chen feng @ ubc ca - History
- 2025-03-23: revised
- 2023-10-17: received
- See all versions
- Short URL
- https://ia.cr/2023/1612
- License
-
CC BY-SA
BibTeX
@misc{cryptoeprint:2023/1612,
author = {Amirhossein Khajehpour and Hanzaleh Akbarinodehi and Mohammad Jahanara and Chen Feng},
title = {Mitigating {MEV} via Multiparty Delay Encryption},
howpublished = {Cryptology {ePrint} Archive, Paper 2023/1612},
year = {2023},
url = {https://eprint.iacr.org/2023/1612}
}
