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    Home»Regulation»Could Encrypted Mempools Become the Standard? What Other Chains Are Doing About MEV
    Regulation

    Could Encrypted Mempools Become the Standard? What Other Chains Are Doing About MEV

    October 13, 20266 Mins Read
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    Every trader on a public blockchain eventually runs into the exact same awkward problem.

    Furthermore, when you submit an order, there is a brief window where everyone can see it before it actually settles. The automated bots watching that gap have a specific name for what they do, and most users know it as getting sandwiched. Consequently, when Aptos announced on October 12, 2026, that its encrypted mempool is live on mainnet, the more compelling story became how its approach contrasts with what Ethereum and Solana have built to tackle the very same challenge.

    What Went Live on October 12

    According to Aptos, users can now encrypt pending transactions on a per-transaction basis. Based on the initial launch coverage, the specific transaction details, including which smart contract function is called and with what inputs, stay entirely hidden until the block is finalized. However, the sender address and gas fees remain fully visible. That distinction is crucial: this provides confidentiality for what you are doing, rather than anonymity for who you are. Additionally, because the feature is opt-in, nothing changes for users who do not request it.

    This rollout has been building momentum behind the scenes for some time. The Aptos docs repository merged a PR titled “Encrypted mempool is live on mainnet” on October 6, and the official announcement followed shortly after. Furthermore, Aptos has actively pitched the feature to traders, institutional players, and AI agents, whose large automated orders would otherwise broadcast their strategic intent to front-runners.

    How the Cryptography Works

    Under the hood, Aptos’s architecture relies on batched threshold encryption. In practice, users send encrypted payloads directly to validators, meaning no single validator has the ability to read them in isolation. Instead, decryption requires validators to act collectively, unmasking entire batches at once as described in the system’s security documentation.

    Moreover, the underlying cryptographic scheme underwent a thorough four-week audit by zkSecurity in March 2026. The auditors identified seven high-severity issues including forgeable range proofs, replayable key-generation transcripts, and a bug that could crash validators, most of which were subsequently patched. Nevertheless, the report makes its core trust assumptions explicit: the network relies on an honest majority of validators by stake alongside a trusted-setup reference string. Meanwhile, the sender address, ciphertext, and specific payload metadata remain visible by design.

    How Ethereum Handles the Same Problem

    In contrast, Ethereum does not feature an encrypted mempool at the native protocol level. Instead, it relies on a patchwork of secondary solutions. Many traders route orders through private order flow services, ensuring their transactions never touch the public mempool before reaching a select group of builders. While this mitigates sandwich attacks, it effectively shifts trust away from the open network and toward a small circle of centralized intermediaries.

    Meanwhile, Ethereum’s long-term research direction is detailed in an Ethereum Research post from February 2025. It identifies threshold encryption as the most viable near- to mid-term approach, outlining a three-stage rollout: RPC integration, optional relays with proposer commitments, and ultimately an in-protocol design where a subset of validators acts as key holders. Notably, Shutter’s threshold encryption was already live on Gnosis Chain using a small set of key holders. However, the proposal highlights significant ongoing engineering challenges, including enforcing on-time decryption, mitigating collusion risk, and aligning the mechanism with Proposer-Builder Separation (PBS).

    At the same time, Ethereum’s broader MEV infrastructure overhaul, enshrined Proposer-Builder Separation (ePBS) within the Glamsterdam upgrade, experienced scheduling delays as of April reporting. As a result, exact deployment timelines for Ethereum’s protocol-level MEV reforms remain fluid.

    How Solana Handles It Differently

    Solana takes a fundamentally different path because it operates without a global mempool entirely. Instead, incoming transactions are streamed directly to the active or upcoming block leader. Although this architecture sounds like it would eliminate front-running naturally, MEV challenges persist. On Solana, MEV extraction primarily flows through Jito’s block engine, which utilizes an off-chain virtual mempool alongside sealed-bid auctions for transaction bundles.

    To address this, Jito introduced BAM (the Block Assembly Marketplace). As highlighted in a 4Pillars research report, BAM sequences transactions inside Trusted Execution Environments (TEEs) using encrypted memory and remote attestation to verify that ordering rules are strictly followed. Following its initial mainnet launch in late 2025, BAM has provided a hardware-secured solution, though researchers note its primary limitation: it cannot block “blind” MEV strategies that rely purely on statistical prediction rather than inspecting payload contents.

    Three Bets on Where to Put the Trust

    To summarize the landscape, each major architecture approaches transaction privacy by anchoring trust in a different layer of the stack:

    • Aptos trusts a validator stake majority. Because encryption is built directly into the base protocol, compromising it would require widespread validator collusion.
    • Ethereum trusts a network of private builders, relays, and off-chain key-holding committees. Consequently, while the ecosystem remains highly flexible, current MEV protection exists largely outside the core consensus layer.
    • Solana trusts specialized hardware enclaves (TEEs) and specialized ordering engines. As a result, execution remains exceptionally fast, but security ultimately depends on hardware manufacturers and side-channel resistance.

    Ultimately, none of these trade-offs comes without a cost. Therefore, the practical question for developers and traders is not simply which blockchain wins, but rather which set of security assumptions they are most comfortable accepting.

    Why “First” Deserves Caution

    While some initial announcement posts framed Aptos as having the “first” encrypted mempool, that claim requires clear nuance. For instance, Gnosis Chain has already been running Shutter-based threshold encryption in production. Thus, the more accurate and defensible claim is narrower: Aptos has integrated opt-in threshold encryption directly into the base layer of a major Layer-1 network. While distinct from being absolute first-to-market across all web3, this remains a significant milestone for L1 architecture.

    What to Watch Next

    Moving forward, three key indicators will determine whether this approach becomes an industry standard:

    1. User Adoption Rates: Tracking what percentage of overall transaction volume actively opts into payload encryption.
    2. Bot Adaptation: Observing whether unencrypted metadata, such as sender addresses and gas fees, allows MEV bots to infer trade intent and front-run transactions regardless.
    3. Ecosystem Integration: Monitoring how quickly major trading venues like Decibel and wallet providers like Petra integrate encrypted transactions as their native default.

    As Aptos noted in its research on institutional markets, robust MEV protection is a core prerequisite for high-frequency financial applications. If key wallets and decentralized exchanges make encrypted mempools the default user experience, this design will transition from a standalone feature into an expected baseline across modern blockchains.

    Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. 

    Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!





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