EIP-8105 Proposes Encrypted Mempool to Combat MEV on Ethereum
- Sandwich attacks are estimated to cost Ethereum users around $60 million annually.
- EIP-8105 introduces a scheme-agnostic encrypted mempool design, supporting various encryption methods.
- Two new transaction types will be created under the EIP-2718 framework for encrypted and decrypted transactions.
- The proposal aims to limit MEV exposure by enforcing a specific block structure for transaction execution.
- EIP-8105 remains an open draft and is part of ongoing discussions about Ethereum’s roadmap to reduce harmful MEV.
The introduction of Ethereum‘s EIP-8105 could significantly change how transactions are processed, potentially reducing the impact of malicious activities like sandwich attacks that cost users millions each year.
With plans for a flexible encryption system, EIP-8105 aims to create a safer environment for transactions on Ethereum, addressing the annual loss of approximately $60 million due to MEV-related issues.
