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Phala Network

Privacy-preserving cloud computing.

About Phala Network​

Phala Network is a decentralized cloud computing platform specializing in verifiable, privacy-preserving computation for Web3 applications. It leverages Trusted Execution Environments (TEEs) and blockchain technology to create a secure infrastructure for confidential smart contracts, AI workloads, and sensitive data processing. As a pioneer in confidential computing, Phala bridges the gap between trustless systems and enterprise-grade performance, enabling developers to build decentralized applications (dApps) without compromising speed or security.

Main Products/Services:

  • Phala Cloud: A TEE-powered decentralized cloud platform for secure AI/blockchain workloads.
  • Phat Contracts: Serverless smart contracts with privacy features, compatible with multiple blockchains.
  • TEE Clusters: Secure computing nodes grouped for redundancy and fault tolerance.

Web3 Significance: Phala addresses critical challenges in decentralized AI, DeFi, and data privacy by providing a scalable alternative to traditional cloud services while maintaining cryptographic guarantees. Its integration with Polkadot enhances cross-chain interoperability for privacy-focused applications.

Technology​

Core Stack:

  • Intel TDX Enclaves: Hardware-level isolation for tamper-proof computation.
  • Substrate Framework: For blockchain interoperability (Polkadot ecosystem).
  • End-to-End Encryption: Secures data in transit and at rest.
  • Remote Attestation: Proof of TEE integrity via cryptographic verification.

Technical Approach: Phala separates its blockchain layer (consensus) from its off-chain TEE worker network. Smart contracts execute in isolated enclaves, ensuring data remains encrypted even during processing. This allows:

  • Confidential Computation: Secure execution of AI models, financial transactions, and private APIs.
  • 1000x Cost Efficiency: Compared to traditional trustless systems like zero-knowledge proofs.

Problems Solved:

  • Mitigates centralized cloud risks (data leaks, vendor lock-in).
  • Enables privacy-preserving DeFi, AI agent swarms, and cross-chain data sharing.

Key Features​

  1. TEE-Based Security: Hardware-enforced isolation for AI agents and smart contracts.
  2. Polkadot Integration: Cross-chain interoperability with parachains.
  3. Phat Contracts: Privacy-first serverless functions (supporting Rust/JavaScript).
  4. Decentralized Cloud: Resistance to censorship and single points of failure.
  5. Free Tier + Credits: $400 in credits for developers to test TEE workloads.
  6. ElizaOS Compatibility: Secure deployment of AI agent swarms.
  7. Multi-Platform Support: Discord, Twitter, and Telegram connectors for agent ecosystems.

Integration with Eliza​

Phala Network provides TEE-secured infrastructure for ElizaOS agents, enabling:

  • Secure API Key Management: Agents interact with external services (e.g., Twitter, blockchain networks) without exposing credentials.
  • On-Chain Transaction Privacy: Execute swaps, transfers, or governance actions confidentially.
  • Multi-Agent Coordination: Eliza V2 Beta agents (launched March 2025) leverage Phala Cloud’s TEE clusters for swarm communication.

Technical Synergy:

  • Phala’s updated phala-cloud-cli (March 2025) simplifies deployment of ElizaOS workflows.
  • Joint development of agent auditing frameworks with GoPlus Security ensures verifiable AI behavior.

Official Plugin: The ElizaOS-Phala Plugin enables TEE-backed memory storage and document processing for agents, featured in the Eliza starter kit.

Recent Developments​

  • April 2025: Launched Phala Cloud with Intel TDX support and free credits.
  • March 2025: Enabled Eliza V2 Beta agent swarms on Phala Cloud.
  • January 2025: Partnered with GoPlus Security to enhance TEE program auditing.
  • Q4 2024: Joined NVIDIA’s Inception Program for AI acceleration.

Public Roadmap:

  • Expand TEE support to AMD SEV and ARM Realms.
  • Decentralize Phala Cloud’s node governance.

Market Position​

Competitors: Contrasts with Oasis Network (privacy focus) and Akash Network (decentralized cloud) by combining TEEs with blockchain.
Key Partnerships:

  • Eliza Labs: Primary infrastructure partner for AI agents.
  • Secret Network: Privacy-enhanced blockchain collaboration.
  • GoPlus Security: Joint security frameworks for TEE programs.

Adoption Metrics:

  • $183M Total Staked (as of March 2025).
  • 500+ AI agents deployed on Phala Cloud in Q1 2025.