Bringing privacy to EVM applications using confidential computing

The article proposes bringing privacy to existing EVM applications through off-chain co-processors that compute on encrypted data using privacy-enhancing technologies such as FHE, with encrypted ERC20 tokens and batched, differentially private order settlement as core components. It argues that transparent public-chain transaction flows deter privacy-conscious users and expose users to front-running, and that prior approaches like threshold-encrypted mempools and shielded pools face high barriers, complex key management, UX problems, and regulatory concerns. The design is inspired by Penumbra's Zswap DEX, which uses sealed-bid batch swaps. Orders are aggregated before decryption so individual amounts stay hidden, and the return amount for each user is calculated homomorphically.