Shutter Network Launches Shutter API to Bring Next-Gen Encryption to Web3

Shutter Network, a leader in decentralized privacy solutions, has launched Shutter API, a breakthrough encryption tool that brings trustless, decentralized encryption to Web3 and Web2 applications. This new API allows developers to encrypt and securely reveal data at precise moments, making it ideal for applications like sealed-bid auctions, fair on-chain gaming, parimutuel betting, and private voting systems. Unlike traditional encryption methods, Shutter API eliminates the need for Trusted Execution Environments (TEE) or centralized custodians.

A New Era of Programmable Privacy in Web3

Blockchain technology is designed for transparency, but many decentralized applications (dApps) require selective privacy to ensure fairness and security. With Shutter API, developers can integrate threshold encryption, ensuring sensitive information—such as bids, votes, or gaming actions—remains private until a designated reveal time.

Heiko Franßen, CEO of brainbot GmbH, a core contributor to Shutter Network, emphasized the impact of encryption in protecting information. He stated that Shutter API allows developers to build applications that were previously impractical, such as sealed-bid auctions and fully private multiplayer games, without sacrificing decentralization.

By preventing premature access to sensitive data, Shutter API enhances fairness in a wide range of applications, ensuring that neither users nor centralized entities can gain an unfair advantage.

How Shutter API Works

Shutter API uses a three-step encryption process to secure data:

1. Encrypt – Users place sensitive data in a virtual “sealed envelope.”
2. Commit – The envelope is cryptographically sealed and stamped by a validator, voting system, or game server.
3. Reveal – At the predetermined moment, the envelope is unsealed, ensuring fair execution.

This process eliminates information asymmetry by ensuring that all participants receive the data at the same time. For instance, in an NFT auction, bids remain fully private until the auction closes, preventing manipulation or insider access.

Key Use Cases for Shutter API

Shutter API brings powerful encryption to Web3 applications where privacy and fairness are critical.

• Sealed-Bid Auctions & NFT Marketplaces – Keeps bids hidden until the auction ends, ensuring fair competition.
• Fair On-Chain Gaming – Enables hidden moves in poker, Mafia-style games, and strategy-based competitions without requiring centralized servers.
• DeFi Trading & Parimutuel Betting – Prevents front-running and sandwich attacks by concealing transactions until execution.
• Corporate Procurement (Sealed RFPs) – Ensures confidential bidding processes, preventing leaks or manipulation.

With these capabilities, Shutter API provides developers with an essential tool for maintaining fairness and transparency in blockchain applications.

Decentralized Threshold Encryption for Web3 Security

Unlike TEE-based encryption, which depends on centralized hardware and introduces single points of failure, Shutter API leverages a distributed Keyper network for threshold encryption.

• No single entity controls encryption keys – A decentralized network of Keypers collaboratively generates and manages encryption keys.
• Pre-set decryption triggers – The system ensures that data remains encrypted until predefined conditions are met.
• Secure by design – Each Keyper holds only a fragment of the decryption capability, eliminating vulnerabilities associated with central control.

Developers can integrate Shutter API using the Shutter SDK (TypeScript library), simplifying encryption and decryption with just a few lines of code.

Proven Impact in Web3 Applications

Shutter Network’s encryption technology is already powering major Web3 platforms:

• Gnosis Chain – Uses Shutter encryption to protect transactions from front-running attacks.
• Snapshot (DAO Voting Platform) – Implements Shutter encryption for shielded voting, securing elections for over 600 DAOs, including Arbitrum and Bankless.
• Future Expansion – Snapshot is transitioning to Shutter API for enhanced privacy in DAO governance.

By eliminating premature access to information, Shutter API strengthens trust in decentralized applications.

Addressing the Free Option Problem in Web3

One of the biggest challenges in decentralized transactions is the Free Option Problem, where one party can exploit asymmetric information.

For example:

• Traders might cancel a transaction if they see a price swing in their favor.
• Bidders in auctions may withdraw if they detect a competitor’s price advantage.
• Gamers could modify moves if they discover a weakness in an opponent’s strategy.

Shutter API prevents such scenarios by ensuring that data remains sealed until a provably fair event occurs. This removes the need for users to trust centralized actors while preserving fairness in blockchain interactions.

Industry Adoption and Next Steps

Shutter API is now available for immediate use, giving developers access to advanced encryption tools. The integration process is lightweight, with open-source documentation and SDKs available on the Shutter Network website.

Developers can get started by visiting shutter.network, where they can access integration guides, testnet environments, and live demos.