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Fluton Research Series 7/20: Confidential Settlement Protecting an intent before execution is only half the privacy problem. What happens when the transaction settles? On most public blockchains, the final result becomes another permanent data point. Balances change publicly. Positions become visible. Execution history can be reconstructed. Even when the original order was hidden, settlement may reveal enough information for observers to understand what happened. @FlutonIO aims to extend confidentiality to this final stage. Its architecture describes privacy across the entire action lifecycle: Intent submission. Routing. Execution. Settlement. The goal is not simply to hide a transaction while it is pending. The goal is to prevent external observers from accessing sensitive balances, positions, and execution history after completion. This distinction matters. Imagine placing an order behind a curtain, but displaying the complete result, account balance, and strategy immediately afterward. The action was temporarily private. The financial behavior was not. Confidential settlement attempts to close that gap. In Fluton’s model, assets can exist in an encrypted state while actions are processed privately. When users later unshield, encrypted balances are settled and only the required settlement information is revealed as assets return to their public representation. Security still cannot depend on blind trust. Fluton states that user funds remain locked within the protocol until execution is verified, each intent can only settle once, and settlement outcomes are determined by onchain state transitions rather than offchain promises. That is the deeper purpose of confidential settlement: Privacy without sacrificing deterministic execution. The network should be able to prove that the correct outcome occurred without publishing every sensitive detail behind it. This is where privacy becomes more than hiding an order. It becomes a persistent property of the financial state created by that order.

It is a great honor to witness the @FlutonIO community continuing to thrive. Another 12 members have officially taken on the "Encrypted" role in recognition of their outstanding contributions. Congratulations to you all! I believe that with perseverance and commitment, every member of the community will achieve significant milestones. Keep up the consistent spirit. @cryptoperseus_

Why FHE Is a Critical Foundation for Fluton’s Confidential DeFi Vision DeFi has introduced new ways to access financial services onchain, but most of these interactions still happen in public. Transactions can be tracked, balances can be analyzed, and execution strategies often become visible to anyone monitoring the network. While transparency helps with verification, it can also expose sensitive information that users, businesses, and automated systems may prefer to keep private. For Fluton, solving this problem requires more than simply encrypting data before it is stored or transferred. Confidential execution depends on the ability to process information without exposing it during computation. This is where Fully Homomorphic Encryption (FHE) becomes a key part of the architecture. FHE allows computation to happen directly on encrypted data, meaning inputs can remain protected while logic is applied and intermediate values stay hidden throughout execution. Fluton uses this capability to support encrypted intents and confidential execution flows. Users describe desired outcomes through encrypted intents, while solver networks execute actions on encrypted state. Sensitive information such as balances, transaction amounts, routing preferences, and execution strategies does not need to become public for the action to be completed. Privacy remains active throughout submission, routing, execution, and settlement, creating a different model from the fully transparent execution commonly found in DeFi today. This is why FHE is more than a supporting technology within Fluton's design. It is one of the foundations that makes confidential DeFi possible. The ability to compute on encrypted data enables private-by-default execution across payments, swaps, bridging, and yield strategies while helping protect the information that would otherwise be exposed on public infrastructure. By building around FHE, Fluton is working toward a model where DeFi can remain programmable without requiring every aspect of financial activity to be publicly visible. @FlutonIO

Fluton Research Series 6/20: Privacy as MEV Protection In Post 5, I explored how @FlutonIO can compute on encrypted data without exposing it. That privacy has another important consequence: It can reduce the information available to MEV extractors. Most people experience MEV without realizing it. You submit a trade. Before it settles, bots can detect its size, direction, slippage tolerance, and likely market impact. That information creates opportunities for front-running, sandwich attacks, back-running, and strategy copying. The problem is not only that transactions are public after execution. They are often visible while still waiting to be executed. Your pending transaction becomes a signal. Fluton attempts to remove that signal through encrypted intents. The user’s desired action is encrypted before it enters the execution flow. Solvers can compete to fulfill the intent without receiving its sensitive plaintext parameters, while the user chooses between offers based on priorities such as cost or speed. This changes the information structure. A solver may know that an opportunity exists. But it should not automatically know the private details needed to exploit the user. That distinction matters because many MEV defenses try to repair execution after transaction data has already leaked. Fluton’s approach is more fundamental: Prevent the valuable information from becoming public in the first place. Privacy therefore becomes more than personal secrecy. It becomes execution protection. The less the network can observe about an unfinished action, the harder it becomes to trade against that action before settlement. Fluton’s documentation describes confidential execution as protecting strategy, size, routing preferences, and conditions throughout the action lifecycle. This does not mean every form of MEV disappears automatically. Solvers, pricing mechanisms, settlement rules, liquidity conditions, and implementation details still matter. But encrypted intents could remove one of MEV’s most important resources: Advance knowledge of what the user is about to do. In traditional markets, hiding an order until execution is considered normal protection. Onchain, Fluton is trying to make that protection programmable.

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