We’re incredibly excited to announce Fluton.
Fluton is a Universal Confidentiality Engine for the digital economy, enabling privacy simultaneously across blockchains, assets, and applications through a unified execution layer. Existing privacy solutions remain siloed and single-chain, limited to basic p2p use cases, and unable to meet the needs of users in today’s multi-chain reality.
Built for a multi-chain world from day one, Fluton delivers private-by-default, composable interactions across chains,dApps and assets without sacrificing usability or interoperability.
The Emergence of Demand for Privacy
The Cost of Transparency
Blockchain transactions being public and traceable by default have created serious privacy debates along with the adoption; this situation has accelerated the process of finding a solution to the risks created by financial activities being completely exposed on-chain. Over time, not only the personal users, but also the institutional actors, market makers and professional investors have noticed the structural issues this transparency caused. Transactions, asset balances and commercial strategies being open to everyone has created an environment for market manipulations, strategy copying and adversarial behavior.
When Transparency Becomes an Attack Surface
This transparency has turned the transaction execution process into an environment where sophisticated actors can easily frontrun user transactions. Extractive attack vectors, specifically MEV strategies which focus on latency and transaction ordering, have resulted in severe economic losses for users.
Beyond MEV, transaction data being completely public creates entirely new risks. Malicious actors and hackers analyze on-chain activity to target wealthy wallets and carry out attacks using phishing and social engineering. These actors can also replicate the actions of these targeted wallets, which is commonly called as copy trading.
Ultimately, the absolute transparency model of public blockchains brings significant benefits for trust and verifiability. Yet, it creates an unsustainable dynamic for financial privacy, user security, and fair execution. This imbalance makes one thing entirely clear. Privacy is not an optional feature but a fundamental requirement.
The Rise of On-Chain Privacy
This environment triggered the development of first-generation privacy-first networks like Zcash and Monero. They introduced a paradigm shift by enabling value transfer without direct on-chain exposure of financial activities.
These systems proved that privacy is a core necessity rather than an afterthought. Yet their architecture remains completely enclosed. They fail to support existing major blockchains and are fundamentally restricted to peer to peer payment use cases.
As the ecosystem expanded broader, isolating privacy on entirely separate networks became unsustainable. Severe liquidity fragmentation and the lack of composability with existing dApp smart contracts forced a new architectural approach. The privacy space evolved to meet this exact demand. Rather than migrating users to new networks, developers built solutions to bring confidentiality directly to where users and liquidity already is. This idea opened up the way for protocols like Tornado Cash and Railgun, introducing application level privacy layers directly on top of major blockchains.
Privacy Without Compliance
Tornado Cash remains one of the most prominent and widely adopted privacy protocols. Unlike solutions such as Zcash and Monero, Tornado Cash successfully preserved user privacy directly on existing major blockchains. It allows users to deposit assets into a shared liquidity pool and withdraw them later from a completely different wallet address. This mechanism breaks the direct link between depositing and withdrawing wallets which obfuscates user fund flows. Beyond offering core peer to peer capabilities similar to Zcash and Monero, Tornado Cash had over 1B TVL at its peak.
The fundamental issue with Tornado Cash was that malicious actors exploited the application alongside legitimate users seeking personal privacy. Specifically, the North Korean hacker Lazarus Group and other illicit actors utilized Tornado Cash to launder funds and finance crimes like terrorism.
Against all these activities, Tornado Cash lacked a risk management framework to defend the protocol from malicious entities. This critical structural problem led to severe sanctions against the protocol by the US Treasury Department Office of Foreign Assets Control (OFAC).
Existing protocols don’t scale.
Privacy has evolved from “just a feature” into a fundamental requirement for financial systems. Yet, current privacy protocols largely remain isolated within their own networks or settle for limited use cases.
Existing solutions force unacceptable compromises across usability, security, and compliance. Truly scalable on-chain privacy must accomplish more than simply obfuscating user funds. It must be able to integrate with the existing dApp and wallet ecosystem while natively meeting regulatory compliance standards. This architecture is necessary to protect legitimate users and shield the protocol from sanctions and legal liabilities.
Enter Fluton: Scaling on-chain privacy
Fluton is the universal privacy execution engine designed for the digital economy. The objective extends far beyond simply hiding transactions. It aims to establish a default private, secure, and fair execution environment across the entire blockchain ecosystem.
The Fluton approach fundamentally differs from existing privacy protocols. It refuses to stop at basic transaction obfuscation. Fluton enables private DeFi interactions, mitigates MEV driven market exploitation, delivers a regulatory compliant privacy model, and integrates seamlessly with the existing wallet and dApp ecosystem.
Current smart contract architectures require data to remain in plaintext for processing. Fluton eliminates this severe limitation by placing Fully Homomorphic Encryption technology at the core of its architecture.
Users broadcast their transactions to the network as encrypted intents. Powered by FHE technology, network nodes and sequencers can mathematically verify and execute these transactions without ever seeing the intent payload, transaction amount, destination address, or trading strategy. Smart contracts compute over an end to end encrypted state, generating verifiable results with zero data exposure.
Absolute transparency acts as a primary weapon for MEV bots. Within the FHE powered architecture of Fluton, transactions enter the mempool entirely encrypted. This ensures no sophisticated actor can frontrun or manipulate orders through sandwich attacks. Users are protected by default because privacy is fundamentally embedded into the core consensus mechanism rather than being treated as an afterthought.
Regulatory Compliance
The core of the legal issues and sanctions faced by Tornado Cash was because of its unregulated structure, completely unable to distinguish legitimate users seeking privacy from malicious entities like North Korean hacking groups and money launderers.
A user entering Fluton or executing encrypted transactions can mathematically prove their funds do not originate from global sanction lists like OFAC or known hacker wallets. They accomplish this without exposing their identity, wallet balance, or transaction history. This mechanism outputs a verifiable non-inclusion proof, confirming the funds are clean. Put simply: You do not need to know who I am, but I cryptographically prove I am not a sanctioned actor on that list.
This security shield prevents illicit actors from exploiting Fluton for their illegal actions. It guarantees legitimate users that they are transacting within a completely clean liquidity pool.
For deeper institutional requirements, Fluton also integrates reactive compliance tooling. Users can keep their activity entirely dark on public networks while maintaining the ability to voluntarily share view keys. This allows them to prove the legitimacy of their funds to authorities, exchanges, or tax auditors whenever it’s necessary.
Fluton SDK: Plug-and-Play Confidentiality
Building a privacy native dapp forced developers into one of two difficult choices. You either had to convince your users to migrate to an isolated, low liquidity specific privacy chain, or you had to spend months writing complex cryptographic proofs from scratch. Fluton completely eliminates this developer barrier.
The SDK vision of Fluton is to transform privacy from a new network destination into an invisible infrastructure that integrates into your existing ecosystems.
At the core of this vision lies the Fluton SDK, designed specifically for developers. Engineered with a TypeScript first approach, this toolkit reduces workload of adding a cross chain privacy layer to your dApp on existing networks like Ethereum, Arbitrum, or Solana to just a few lines of code.
Developers can remain in their familiar ecosystems while integrating an MEV protected, completely encrypted execution layer into their application backend that reduces frontrunning to zero.
With Fluton, on-chain privacy is no longer a monopoly held by expert cryptographers. It becomes a universal standard accessible to every Web3 developer through a single import command:
import { FlutonClient } from "@fluton/sdk"What's Next?
Fluton’s private testnet has been closed with 13,000+ unique users. We are actively developing the Fluton SDK, designed to enable developers to integrate confidential, interactions into their apps with minimal friction. The SDK will expose Fluton’s core primitives for private execution and composable cross-application workflows.
We are open to partnerships and technical collaboration. If you are interested in integrating with Fluton, exploring the SDK, or discussing protocol-level design please reach out to us at contact@fluton.io.
