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Encrypted mempools are one of the cleanest ideas in MEV mitigation: hide transaction details until it’s too late to front-run them.
If validators (or a threshold committee) can’t see the payload, they can’t easily:
- copy a trade,
- sandwich it,
- sell the order flow,
- or pre-position around it.
In this case you’re replacing “everyone sees everything instantly” with “reveal happens later and must be coordinated.”
The main costs show up as:
➤ latency / delay where some designs require a reveal phase, a decryption window, or preconfirmations. That can add time before execution certainty.
➤ coordination risk where someone has to decrypt (a validator set, a committee, or a mechanism). If they fail, stall, or collude, user experience degrades.
➤ new failure modes where key management, liveness assumptions, and “who learns what when” become part of your protocol surface area.
So encrypted mempools aren’t a free lunch, instead they’re a conscious decision to pay a coordination cost to reduce visibility.

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