Like every other technology, blockchain also has potential for improvement. It’s interesting to note that new solutions-oriented blockchain protocol are in the process of being designed to address the shortcomings that the tech has. For example, Polkadot resolves the issue of interoperability between blockchains. Chainlink facilitates communication between off-chain data and on-chain APIs and data servers. Hathor enhances scalability and lowers transaction costs.
In addition, every new blockchain technology has particular strength, which further increases the efficiency of blockchain technology and makes it more flexible for use in real life.
For this post, we’ll look at a different blockchain-based protocol, called Phala Network. It can be described as a cloud-based computing platform that can provide security in blockchain smart contracts, DeFi and dApps. Phala attempts to address issues of trust within the cloud computing.
What is the significance of confidentiality when it comes to smart contracting?
Blockchain is distinctive because it is an open ledger with a distributed system that records transactions in a safe and transparent manner. Each transaction is recorded publicly. Therefore, anyone can confirm it, however, nobody can alter the information. Blockchain’s transparency Blockchain is a groundbreaking feature that enhances security and user autonomy.
However, some businesses may also possess sensitive or private information they don’t want to expose for all to see. For instance, traders in the stock market are keen to make their information available, but aren’t keen on revealing their orders or their positions. Due to the privacy concerns, those privacy-related DApps on Ethereum are not in compliance in accordance with General Data Protection Regulation. In the end, they could be blocked by the European Union.
Certain blockchains are not appropriate to process confidential information. Bitcoin and Ethereum aren’t. The inability to handle sensitive data or sensitive information for business restricts the use of the Blockchain because it causes trust issues.
A variety of methods address the issue of confidentiality and privacy in Blockchain However, the solutions are only applicable to cryptocurrency and do not expand to smart contracts.
What is the Phala Network?
Phala Network is a new method that aims to provide the security of smart contracts using specialized hardware Trusted Execution Environment (TEE). Its goal is to offer privacy-preserving smart contracts to meet four goals:
- Secure the privacy of managed apps.
- Give computing power that is on level with existing cloud services.
- Keep the security and reliability of Blockchain. All computing operations performed on Phala are secure.
- Interoperable cross-chains without compromising security.
In our insights on blockchain interoperability that cross-chain communication is essential for any blockchain-based smart or dApp, otherwise, its usage in the real world is extremely restricted. The confidential contracts that are powered by Phala can be interoperable, and can be used to interact with other private contracts in a symbiosis.
Phala Blockchain is built upon Substrate which is interoperable to the Polkadot ecosystem. (Read for more information regarding Polkadot interoperability) Additionally, Phala is a Parachain of Polkadot and, by design the Phala blockchain has the capability of being an interoperable blockchain. But, Phala takes Interoperability a step higher by facilitating the transfer of assets to another blockchain while maintaining confidentiality.
What are the major benefits that come with Phala Network?
- Phala is protected against attacks at the system level because sensitive information will be processed and processed by TEE which is an isolated processor
- Only authorized key-protected actions are permitted on the network.
- All off-chain and on-chain communication is encrypted from beginning to end.
- The code off-chain and execution is verified on chain.
- A substrate-based parachain that is akin to Polkadot, Phala is designed to be interoperable and cross-chain compatible.
- Since it is interoperable, Phala is able to offer computing capabilities to other blockchain-related applications.
Read More : https://www.leewayhertz.com/what-is-phala/
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