Phase 1 – Threshold Decryption In Consensus
Phase 1 introduces encrypted transaction handling directly into the consensus process.
- Transactions (including data and recipient addresses) remain fully encrypted until supermajority consensus is reached.
- Once consensus is secured, transactions are decrypted just-in-time (JIT) for EVM execution.
- Eliminates all front-running and MEV vectors while maintaining single-slot finality and throughput.
Key Features:
- MEV-Proof Transactions – Prevents preview and extraction by validators or sequencers.
- One-Round Encrypted Consensus – No additional consensus rounds or latency penalties.
Unlocks:
- Private DeFi
- Shielded prediction markets
- Concurrent transaction flows
- Encrypted CLOB or TWAP order execution
Phase 2 – Threshold Decryption In Solidity
Phase 2 extends encryption to onchain data at rest. Smart contracts can store encrypted state and decrypt it selectively in block N+1 using threshold decryption.
This phase also introduces Conditional Transactions (CTXs): transactions that bind confidential payloads to onchain or time-based triggers and execute them in a later block. CTXs enable trigger-driven, deferred execution while keeping inputs and logic sealed until reveal.
Key Features:
- On-Demand Encrypted Storage – Private state variables decryptable only when called.
- Privacy-Native Contract Logic – Sealed bids, hidden triggers, deferred reveals.
- Conditional Transactions (CTXs) – Trigger-based execution of confidential payloads in later blocks (deferred reveal).
Unlocks:
- Confidential compute
- Onchain gaming logic privacy
- Sealed-action workflows
- Conditional transactions (CTXs) and trigger-driven flows
Phase 3 – Threshold Re‑Encryption
Phase 3 introduces re-encryption, enabling secure transfer of encrypted data between users and smart contracts.
- Encrypted outputs can be re-encrypted to a user’s public key (or group key) without onchain decryption.
- Grants selective access while preserving privacy.
Key Features:
- Fine-Grained Encrypted Access Control – Re-encrypt results to specific users/groups.
- Trustless Confidential Coordination – Enables private DAOs and encrypted escrows.
Unlocks:
- Secure data sharing
- Dispute resolution
- Enterprise workflows
- Private governance
Phase 4 – Threshold Fully Homomorphic Encryption (THFE)
Phase 4 enables computation on encrypted data without ever decrypting it.
- Smart contracts can run mathematical operations over encrypted values.
- Combines homomorphic encryption with ZK-like verification for privacy-preserving computation.
Key Features:
- Private Compute on Encrypted Inputs – No decryption required for execution.
- Confidential Logic + Confidential Data – Fully private program states.
Unlocks:
- Confidential tokens
- Onchain banking
- Private voting for DAOs and governments