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Overview

BITE rolls out in four phases, moving from encrypted transaction inclusion to fully homomorphic encrypted computation. Each step keeps SKALE EVM-compatible while dialing up privacy and MEV resistance. [Graphic placeholder: Phase timeline from encrypted inclusion → encrypted state → re-encryption → THFE]

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BITE Protocol Phases

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Phase 1: Threshold Decryption During Consensus

The first phase establishes threshold decryption capabilities during the consensus process:
  • Encrypted Transaction Inclusion - Transactions are encrypted before entering the mempool
  • Threshold Decryption - Validator committee collaborates to decrypt transactions after block finality
  • MEV Resistance - Transaction details remain hidden until after consensus commitment
  • Commit-Then-Reveal - Ensures transactions cannot be front-run or manipulated

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Phase 2: Threshold Decryption on Smart Contract Data

Building on Phase 1, Phase 2 extends threshold decryption to smart contract data:
  • Encrypted State - Smart contract data can be stored in encrypted form
  • On-Demand Decryption - Data is decrypted only when needed for execution
  • Enhanced Privacy - Contract state remains confidential throughout its lifecycle
  • Confidential Applications (cApps) - Enables applications that process sensitive data securely

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Phase 3: Threshold Re-encryption

Phase 3 introduces threshold re-encryption capabilities:
  • Key Rotation - Ability to re-encrypt data with new keys without decryption
  • Access Control - Fine-grained control over who can decrypt specific data
  • Dynamic Privacy - Privacy settings can be adjusted without exposing data
  • Advanced Use Cases - Supports more complex privacy-preserving applications

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Phase 4: Threshold Fully Homomorphic Encryption (THFE) Within Smart Contracts

The final phase enables computation on encrypted data:
  • Homomorphic Operations - Perform computations directly on encrypted data
  • Zero-Knowledge Execution - Execute smart contracts without revealing inputs or outputs
  • Maximum Privacy - Data never needs to be decrypted for computation
  • Next-Generation Applications - Enables previously impossible privacy-preserving use cases

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Current Status

BITE Protocol is actively being developed across these phases, with Phase 1 providing the foundation for MEV resistance and transaction privacy on SKALE.