coinIX at EthCC 9: Interview with Shutter Network — Tackling malicious MEV & fighting for privacy

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Shutter Network is an open-source project dedicated to tackling the critical issues of malicious MEV (Maximal Extractable Value) in the Ethereum ecosystem. Shutter Network aims to safeguard users from these harmful practices. coinIX invested in Shutter Network in August 2023. Click here to read the investment press released.

Mahsa Doorfard, the sales and marketing manager of coinIX interviewed Loring Harkness, Head of Commercial at brainbot (the company behind Shutter Network) during EthCC 9 in Cannes.

Mahsa: Can you introduce yourself and share your story — how did you enter the blockchain industry?

Loring: My name is Loring Harkness, Head of Commercial at Brainbot, based in Mainz, Germany. I entered crypto in 2021, and the story is quite unusual. Before crypto, I worked in financial inclusion across emerging markets, particularly South and Southeast Asia.

In 2021, I was living in Myanmar when a military coup caused the economy to collapse almost overnight. Many people resisted the regime, and much of Web2 activity shifted to crypto. Crypto provided what people urgently needed: a permissionless, censorship-resistant, pseudonymous global payment system.

People needed a way to fund resistance efforts. Crypto was uniquely suited for that. At that time, I began collaborating with Brainbot on a humanitarian project — a crypto-based community currency for internally displaced people fleeing violence. After four months, the collaboration evolved into a full-time role.

Since it was no longer safe for me to stay in Myanmar, I relocated to Germany. Over the past four years at Brainbot, I’ve worked on multiple projects, including Trustlines, a P2P credit network; Beamer, which enables rollup-to-rollup bridging; and most recently, Shutter. It’s been an incredible journey, and I’m very glad to be here.

Mahsa: Tell me more about Shutter. How would you explain it to someone non-technical?

Loring: Shutter is an encryption-as-a-service protocol, specializing in commit-and-reveal threshold encryption. Let me simplify that. In any situation where multiple participants act simultaneously — whether in games or business — it’s important that no one sees others’ decisions beforehand.

Take rock-paper-scissors. It works because both players reveal their moves at the same time. If one player could see the other’s move first, they would always win. That same issue appears in real-world scenarios: auctions, voting systems, procurement processes, and even blockchain transactions. If information is visible too early, it creates unfair advantages.

Shutter solves this using commit-and-reveal encryption. Participants submit encrypted actions first. Only after everyone has committed are all actions revealed simultaneously. The challenge is trust — who manages the encryption and decryption? A single trusted party could be bribed.

Shutter uses threshold encryption instead. A distributed network of nodes, called keepers, collaboratively manages keys. This removes reliance on any single party and ensures fairness through decentralization and cryptography.

Mahsa: Can you share recent updates or partnerships related to Shutter?

Loring: Shutter addresses a major issue in Ethereum called toxic MEV — Maximal Extractable Value — such as front-running and sandwich attacks. When users submit transactions, they enter the public mempool, which is fully visible. Malicious actors can observe pending transactions and insert their own before or around them to extract profit.

Shutter solves this by enabling encrypted transactions. The transaction is visible, but its contents are hidden until it is included in a block. Once finalized, it is decrypted and executed. This concept is called encrypted mempools.

We proposed EIP-8105, an Ethereum Improvement Proposal, to bring encrypted mempools to Ethereum mainnet. Since proposing it last December, it has gained strong attention, inspired additional proposals, and received support from the Ethereum Foundation. It’s now part of their roadmap for a future hard fork.

Mahsa: Are there competitors doing something similar?

Loring: Yes, and we welcome them. Our proposal sparked multiple alternatives, which led to collaborative refinement across teams. Importantly, encrypted mempools do not embed Shutter into Ethereum itself. Instead, they create a marketplace for encryption providers.

Users can choose their preferred solution — run their own encryption, use trusted execution environments, or rely on services like Shutter. We aim to be a leading provider, but not a monopoly. Most competitors are also collaborators, contributing to a better overall design.

Different users have different needs. For smaller transactions, simpler solutions may suffice. For high-value or sensitive transactions, Shutter’s stronger guarantees become more important.

Mahsa: bearish or bullish in 2026?

Loring: Despite current market sentiment, I’m very bullish. We’re transitioning into a new phase. The past cycle focused heavily on speculation and financialization. That attracted a narrow audience.

Now, builders are focusing on long-term infrastructure — systems designed to last decades. Ethereum, as a credibly neutral settlement layer, is central to this shift. We’re entering a phase of deeper innovation — more mature, practical, and aligned with core values.

Mahsa: Which sector in blockchain do you think is the next big thing?

Loring: DAOs are ready for reinvention. They introduced a powerful vision but faced issues like speculation, misaligned incentives, and governance flaws. Still, the core idea remains strong, and new models are emerging.

DeFi will also continue to grow — but in a more stable, less speculative form. It has proven resilient, with fewer failures compared to centralized systems. DeFi becoming “boring” is actually a sign of maturity — reliable financial infrastructure accessible globally.

Mahsa: Many people have lost confidence in crypto. What keeps you motivated?

Loring: My experience in Myanmar. Crypto can be life-changing. A friend of mine discovered he was on an arrest list. He withdrew his savings, converted them into crypto, memorized his seed phrase, and fled the country. He eventually resettled and continued his education.

That level of financial sovereignty is powerful. While many enter crypto for speculation, I hope they also learn its deeper value — permissionless, censorship-resistant systems. These tools matter, especially as global political uncertainty increases.

Mahsa: Which sectors will disappear in the next two years?

Loring: I wouldn’t say anything disappears. It evolves. Experiments succeed or fail, but the learnings persist. Nothing is wasted. Speculative NFTs may fade, but utility-driven NFTs remain valuable — in DeFi, memberships, and digital ownership.

Mahsa: Is there anything else that you want to share about Shutter Network?

Loring: Shutter itself is more than a single project — it’s an ecosystem. It includes Brainbot and Shutter DAO (0x36), a fully on-chain DAO responsible for governance and selecting Shutter keepers. Anyone can participate by holding SHU tokens and engaging in governance.

Watch the interview on coinIX YouTube channel:

About coinIX Capital GmbH

Since 2017, coinIX Capital GmbH, headquartered in Hamburg, has been at the forefront of analyzing blockchain projects and cryptocurrencies, facilitating investments in this dynamic sector. Comprising specialists with extensive experience in asset management, venture capital, and cutting-edge technology analysis, the coinIX team manages a portfolio boasting over 20 investments in blockchain startups alongside crypto assets. Shares of coinIX GmbH & Co. KGaA are listed on the free market of the Düsseldorf Stock Exchange and are also traded on the Berlin and Munich stock exchanges.

About coinIX COINVEST SCI1

Launched in June 2022, coinIX COINVEST SCI1 is an open domestic special AIF under the KAGB. As a sub-portfolio of coinIX COINVEST Investment Stock Corporation with variable capital, its assets are managed by coinIX Capital GmbH, acting as a registered capital management company. Available for subscription by professional or semi-professional investors, the fund has the flexibility to invest up to 100% of its capital in crypto assets, aiming for a diversified portfolio of digital assets actively managed through ongoing selection processes.

Additional income streams are generated through staking and other blockchain-native mechanisms. With the ISIN DE000A408Q55, subscriptions to the fund are only available directly through the investment company, with private investor acquisition prohibited.