> For the complete documentation index, see [llms.txt](https://docs.shadenetwork.io/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.shadenetwork.io/the-problem.md).
# The Problem
On Ethereum alone, **over 89%** of active wallets have been deanonymized by analytics firms (e.g. Arkham), exchanges, and AI-driven chain heuristics.
***
### The limits of mixer privacy
Even “private transactions” on public chains leak metadata:
* gas timing
* nonce increments
* calldata shape
* recipient patterns
* mempool sniffing
Research shows **42%** of TornadoCash users were re-identified from metadata alone.\
Shade’s **encrypted mempool** eliminates this entire attack surface.
***
### MEV exists because blockchains are visible
MEV bots extracted **over $1.1B in 2024** by front-running, sandwiching, and predicting user activity.
They’re not “participants.” They’re predators — and public blockchains feed them everything they need.
Shade fixes the problem at its root: **we remove the visibility**.
***
### Public chains make your identity traceable
Wallet clustering tools can now connect:
* your ENS
* your CEX withdrawals
* your social profiles
* your friends’ wallets
* your previous addresses
Up to **72% accuracy** according to Chainalysis. You might think you’re anonymous. You’re not.
Shade restores what crypto lost: **true unlinkability**.
***
### Smart contracts leak everything
On Ethereum, every internal detail of a contract is visible:
* variables
* mappings
* storage updates
* execution paths
* intermediate states
In a transparent execution environment, your logic becomes alpha for your opponents.
Shade introduces the world’s first **private EVM**, where contract state, storage, and execution are completely invisible.
***
### Why this matters
* The moment your wallet is linked, your history becomes searchable forever.
* Timing, flows, and behavior patterns are enough to reconstruct intent.
* MEV thrives because visibility is total.
---
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