How Does Threshold Encryption Help in Preventing Transaction Reordering?

Threshold encryption involves encrypting transactions such that they can only be decrypted when a certain "threshold" number of independent parties (e.g. validators) cooperate. This ensures that no single entity, including the block builder, can read the transaction content before the block is finalized or a specific time has passed.

By obscuring the transaction's intent, the incentive and ability to reorder for profit are eliminated.