How Batched Threshold Encryption Could End Extractive MEV and Make DeFi Fair Again

Why It Matters

If adopted by rollups and sequencers, the technology would shift value away from MEV extractors toward protocol-level rewards and fairer execution, raising strategic stakes for validators, relayers and DeFi infrastructure providers.

Summary

Researchers propose Batched Threshold Encryption (BTE) as a practical cryptographic fix to extractive MEV, offering epochless, constant-size decryption shares (as small as 48 bytes) that enable pending-transaction privacy for layer‑2 rollups. By allowing transactions to be encrypted and decrypted in compact batches, BTE could prevent front‑running and sandwich attacks without large bandwidth or latency costs, making private transaction ordering feasible at scale. If adopted by rollups and sequencers, the technology would shift value away from MEV extractors toward protocol-level rewards and fairer execution, raising strategic stakes for validators, relayers and DeFi infrastructure providers.