Last updated 8 months ago
Block assembly engine creating blocks inside a TEE ensures greater transparency of block production, guarantees transaction ordering fairness, reduces MEV, and introduces rollback protection
A TEE-based block engine runs a full node in TEE, enforces auditable block rules, preserves privacy until publication, and guarantees blocks are built as intended.
This is the total amount allocated to TEE-based block assembly engine for Cardano.
Please provide your proposal title
TEE-based block assembly engine for Cardano
Enter the amount of funding you are requesting in ADA
100000
Please specify how many months you expect your project to last
6
Please indicate if your proposal has been auto-translated
No
Original Language
en
What is the problem you want to solve?
Block assembly engine creating blocks inside a TEE ensures greater transparency of block production, guarantees transaction ordering fairness, reduces MEV, and introduces rollback protection
Does your project have any dependencies on other organizations, technical or otherwise?
No
Describe any dependencies or write 'No dependencies'
No dependencies
Will your project's outputs be fully open source?
Yes
License and Additional Information
MIT
Please choose the most relevant theme and tag related to the outcomes of your proposal.
Research
Describe what makes your idea innovative compared to what has been previously funded (whether by you or others).
The concept of a TEE-based block assembly engine is only beginning to gain traction. Running a full node inside a TEE is a new capability that has rarely been implemented before. This presents an opportunity for Cardano to be the first blockchain to move block assembly fully inside a TEE.
Describe what your prototype or MVP will demonstrate, and where it can be accessed.
Our MVP will demonstrate the capability of block assembly inside a TEE. To showcase this MVP, we will run our own validator that assembles blocks through our TEE-based block assembly engine. For each block produced, we will also provide proof that the block has been assembled correctly.
In addition, to enable the further development of the TEE-based block assembly engine, we will release the entire code as open source. This will allow new validators to run Cardano nodes using our block assembly engine and likewise verify that blocks are being assembled correctly.
Describe realistic measures of success, ideally with on-chain metrics.
One of the Cardano validators is now operating through the TEE-based block assembly engine, demonstrating secure and transparent block production. The full engine code has been released as open source, enabling adoption by other validators.
Please describe your proposed solution and how it addresses the problem
The goal of this proposal is to bring flexibility of block assembly into the Cardano ecosystem by introducing a TEE-based block engine. We will run the full node logic inside Intel TDX, so block assembly is executed in a verifiable and trust-minimized environment. Each block produced in this setup will be accompanied by a confidential computing proof attesting to the exact code, version, and hardware used, enabling independent verification by the community. Importantly, this implementation will be soft: our nodes will provide proofs that anyone can validate, but other validators are not required to verify or generate them, so existing infrastructure remains unaffected. The block engine will also expose an extensible API, designed for future plugin-based enhancements, allowing developers to add features such as custom block assembly rules directly in trusted hardware. If widely adopted by validators, this approach will unlock further benefits for Cardano: transactions will remain private until publication, MEV opportunities will be reduced, and advanced capabilities such as just-in-time oracles, rollback protection, and priority ordering will become available to the ecosystem.
Please define the positive impact your project will have on the wider Cardano community
The combination of the existing approach with cryptographically verified transaction ordering makes validator attacks virtually impossible.
Advanced institutions require provable execution assurances and auditability, which on-chain services alone cannot provide. TEE-based block assembly engine addresses this challenge by delivering unprecedented privacy and verifiability throughout the transaction process.
If the experiment proves successful, we can enable developers to build custom plugins for managing transaction ordering and implementing new types of user scenarios, such as creating specialized plugins for trading.
What is your capability to deliver your project with high levels of trust and accountability? How do you intend to validate if your approach is feasible?
This is a highly skilled engineering team composed of PhDs in Physics, Mathematics, and Computer Science, and the founding team are alumni of Denarii Labs. Dmitry Meshkov, a prominent researcher and former member of IOHK (IOG). Dmitry holds a Ph.D. in Physics and has authored numerous research papers in cryptography, distributed systems, and computational complexity theory. His groundbreaking contributions have been applied in platforms like Ergo, Waves, and Facebook’s Libra project.
Qualification in TEE development. Quex was among the first teams working with TDX, and
creating own infrastructure for running confidential VMs. Our efforts in TD verification and transparency received highly positive feedback from the confidential computing community. In our joint project (https://kaeru.gg/how-it-works/)) with Secret Network team we demonstrated interoperability of TEE, novel application of the technology, and architectural robustness of approach.
Qualification in smart-contract development and expertise in client-side experience. Our set of TEE-oracles together with TDX verification on-chain infrastructure is successfully running on several EVM-compatible blockchains (ETH, Arbitrum, BNB, Base and etc) These data feeds serve emerging DeFi applications. Smart-contracts have undergone successful security audit by Halborn security
Milestone Title
Cardano Node Code Integration and Initial Block Assembler API
Milestone Outputs
A high-level design of the block assembly engine integrated with Cardano node code. Includes the development of an API for the block assembler and an attestation protocol that can be tested in a controlled environment. The deliverable is a document that will allow verification of the whole attestation process. May also contain prototypes of the functional codebase that demonstrate basic interaction with the node internals
Acceptance Criteria
The documentation of the block engine API is designed and published for review by the community. It contains both external and internal API specifications, as well as the attestation process required to make block assembly verifiable
Evidence of Completion
Published design document, code repository commits with API prototypes, and initial attestation test logs demonstrating integration with Cardano node internals.
Delivery Month
1
Cost
20000
Progress
20 %
Milestone Title
State Handling and External API for TDX Integration
Milestone Outputs
Migration of state management and block application logic into TDX. Implementation of an external-facing API that allows developers to interact with the modified node. Deliverables include an updated node codebase, where block application logic is executed within TDX and new API endpoints are available for block process verification
Acceptance Criteria
Blocks processed within TDX must maintain consensus with standard Cardano nodes. The external-facing API must correctly return block status and attestation data. Integration tests must demonstrate that blocks applied inside TDX are indistinguishable from standard blocks
Evidence of Completion
Testnet reports, functional demo of the external API, repository commits with code and documentation, and logs confirming state synchronization between our node and the Cardano network
Delivery Month
3
Cost
30000
Progress
50 %
Milestone Title
Mempool and Block Assembly Algorithm Porting into TDX
Milestone Outputs
Migration of the Cardano mempool and block assembly algorithm into TDX. The milestone delivers a fully functional Cardano node with the ability to manage transaction selection, ordering, and block formation directly inside TEE. This includes an attestation protocol and monitoring service for debugging and testing
Acceptance Criteria
Mempool functionality must match Cardano consensus rules, and the block assembly algorithm inside TDX must generate blocks consistent with mainnet logic. Internal tests must show valid ordering, correct inclusion of transactions, and consistent attestation
Evidence of Completion
Repository commits, logs showing successful block assembly, and testnet transactions proving mempool and assembly logic running in TDX. Technical documentation and diagrams explaining the architecture will also be delivered
Delivery Month
5
Cost
30000
Progress
80 %
Milestone Title
Validator Deployment and Testing
Milestone Outputs
Launch of a fully functioning Cardano validator powered by the TEE-based block assembly engine. Publication of guides and tutorials on how to run the modified node and perform the verification process. This milestone also includes final testing, debugging, and preparation of developer documentation for the community
Acceptance Criteria
A validator must be running in a testnet/mainnet environment using the TEE-based block assembly engine, producing valid blocks with cryptographic proofs. Code must be publicly available, documented, and verifiable by external developers
Evidence of Completion
Mainnet or testnet logs from our validator, links to the open-source repository, public announcement of release, and documentation confirming reproducibility
Delivery Month
6
Cost
20000
Progress
100 %
Please provide a cost breakdown of the proposed work and resources
Budget and Costs: 100,000 ADA
Documentation and Project Management: 15,000 ADA
1 Project manager @ $1,500 per month for 6 months = 9,000 ADA
1 System architect @ $6,000 per month for 1 month = 6,000 ADA
Cardano Node Modifications: 42,000 ADA
1 Backend developer @ $6,000 per month for 6 months = 36,000 ADA
1 System engineer @ $6,000 per month for 1 month = 6,000 ADA
Block Assembly Attestation: 43,000 ADA
1 System engineer @ $6,000 per month for 6 months = 36,000 ADA
1 Backend developer @ $6,000 per month for 0.5 month = 3,000 ADA
1 QA engineer @ $2,000 per month for 2 months = 4,000 ADA
How does the cost of the project represent value for the Cardano ecosystem?
Cardano has long been at the frontier of blockchain research, and this proposal extends that legacy by pioneering a TEE-based block assembly engine. Delivering it will demonstrate to the broader crypto community that Cardano remains on the cutting edge of innovation, ahead of ecosystems like Solana and Unichain that are only beginning to explore this direction. While implementing a fully functional TEE-based block assembler is a highly complex and costly task, we have deliberately designed this proposal as the smallest and most cost-efficient step to prove feasibility and deliver a working prototype. Its completion and adoption will not only provide immediate evidence of Cardano’s leadership but also unlock multiple avenues for further development, including privacy-preserving transactions, MEV protection, just-in-time oracles, and plugin-based block assembly, greatly expanding the ecosystem’s use cases.
Terms and Conditions:
Yes
Founding Team
Dmitry Meshkov, CEO – https://www.linkedin.com/in/dmeshkov/ (https://iohk.io/en/research/library/authors/dmitry-meshkov/)))),))),) a researcher and former member of IOHK (IOG). Dmitry holds a Ph.D. in Physics and has authored numerous research papers in cryptography, distributed systems, and computational complexity theory. His groundbreaking contributions have been applied in platforms like Ergo, Waves, and Facebook’s Libra project.
Vasily Kharin, CTO – https://www.researchgate.net/scientific-contributions/Vasily-Kharin-2092634643
Ph.D. in Theoretical Physics. Extensive experience in blockchain core design, cryptography, and scaling systems. Designed a Layer-2 protocol securing $3M+ TVL and co-authored high-load infrastructure supporting 1M+ users.
Klavdia Potapova, CPO – https://www.linkedin.com/in/klavapotapova/
Ex-Product Director at Xsolla ($100M revenue). At SKB Kontur Group, scaled a SaaS product from 0 to $16M ARR, managing 400+ staff. Deep experience in product leadership, fintech, and startup growth.
Aleksandr Bannikov – Senior Software Engineer & Infrastructure (https://www.linkedin.com/in/aleksbannikov/))))
Stanislav Zharkov – Lead Software Developer (https://www.linkedin.com/in/zharkovstas/))))