What is TEE and how does Phala Network uses this technology?⛓

Виктория Риболла
7 min readMay 19, 2023

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A Trusted Execution Environment (TEE) is a secure area of a processor that ensures that sensitive data is protected in a secure environment. This technology has become increasingly important in the world of blockchain, where security and privacy are paramount. The Phala Network is a blockchain platform that uses TEE technology to ensure the security and privacy of its users.

Also the platform utilizes Trusted Execution Environment (TEE) technology to provide a decentralised off-chain compute. Off-chain computation allows for more complex computations to be performed quickly and efficiently, without adding unnecessary load to the blockchain network. This is achieved by using external computing resources, such as cloud servers or trusted execution environments (TEEs), to execute the computations and then returning the results to the blockchain.

In this article we will learn in more detail what is TEE, how does it work and how does Phala Network use this technology?👇

What is a trusted execution environment (TEE)?

A trusted execution environment (TEE) is an area on the main processor of a device that is separated from the system’s main operating system (OS). It ensures data is stored, processed and protected in a secure environment. TEEs provide protection for anything connected, such as a trusted application (TA), by enabling an isolated, cryptographic electronic structure and end-to-end security. This includes the execution of authenticated code, confidentiality, authenticity, privacy, system integrity and data access rights.

As demand for digital trust grows and concern over securing connected devices rises, TEEs have gained significance. The concept of a TEE is not brand-new, but it is no longer confined to use in high-end technology. TEEs are used widely in complex devices, such as smartphones, tablets and set-top boxes. TEEs are also used by manufacturers of constrained chipsets and internet of things (IoT) devices in sectors such as industrial automation, automotive and healthcare, which recognize its value in protecting connected things.

Running parallel to the OS and using both hardware and software, a TEE is intended to be more secure than the traditional processing environment. This is sometimes referred to as a rich operating system execution environment.

How does TEE work?

Even though a TEE is isolated from the rest of the device, a trusted application that runs in a TEE will typically have access to the full power available of a device’s processor and memory. In addition, contained applications within a TEE will be separated through software and cryptographic functions. A TEE can also be set to only accept previously authorized code.

How is TEE isolated? On a hardware level, TEE architecture is very much similar to the way your Web3 wallet works — external access to an area of the processor is protected by a set of private keys. Just as only you can approve transactions with a unique private key that no one else has, only trusted applications can access this area and execute code within it. So TEE is literally a part of the processor no unauthorized application can access or even peek into (basically, those apps don’t even “know” such an area exists).

How a TEE is implemented will differ depending on the use case, such as mobile payments, mobile identity, IoT or content protection. Still, the fundamental concepts stay the same — trust, security and isolation of sensitive data.

Although a secure element requires no industry standards, a TEE does employ a set of industry standards to manage many remote devices at one time. These standards relate to the operations of encryption key management, end-to-end security and lifecycle applications. Service providers, mobile network operators, OS developers, application developers, device manufacturers, platform providers and silicon vendors are all contributing to efforts to standardize TEEs.

Following the TEE isolation philosophy, TEE remote management is designed so that specific remote managers can receive control of a subset of applications, but cannot interfere with the rest of those in the TEE. For example, an original equipment manufacturer and a bank could manage their TAs, but neither could interfere with the others.

In the graph below you can clearly see how TEE works👀👇

In simple terms, think of a TEE as a small “box” inside your computer or mobile device. This box has its own secure memory area and processor, separated from the rest of the system. Special programs and applications that require a high degree of data protection, such as cryptographic keys or personal information, are executed inside this box.

The TEE ensures security by creating an isolated environment where data and code are executed without the possibility of unauthorized access or modifications. To achieve this, TEE utilizes various techniques such as encryption, authentication, and access control.

TEEs find applications in various areas, including financial technology, mobile devices, blockchain, and cloud computing. In the blockchain context, for example, TEE can be used to ensure privacy and security of transactions, execute smart contracts, or protect private keys.

We are moving smoothly to the role of TEE in the blockchain and cloud computing and let’s look at this with the example of Phala Network.

What is Phala Network?

Phala Network is a blockchain platform that leverages TEE technology to provide secure and private off-chain computation. Phala Network is designed to provide a secure and private computation environment within a blockchain network. This is achieved through the use of Trusted Execution Environment (TEE) technology, which enables the execution of smart contracts in an isolated and secure environment.

Phala Network process transactions quickly and efficiently. This makes the platform highly scalable, as it can process a large number of transactions in a short amount of time. Phala Network is a decentralized network, which means that it is not controlled by any single entity. This ensures that the network remains secure and reliable, as there is no single point of failure.

I think the best way to get to know a project is to look at its benefits👀

How does Phala Network uses TEE technology?

Now that we know how TEE works and what Phala Network is, let’s see how Phala uses TEE.

Phala Network utilizes Trusted Execution Environment (TEE) technology to create a secure and private computation environment within the blockchain network. Here’s how Phala Network leverages TEE:

  • Secure Computation: Phala Network executes smart contracts within the TEE, which provides a secure and isolated environment for code execution. The TEE ensures that the execution environment is protected from external threats and unauthorized access.
  • Data Privacy: The TEE technology employed by Phala Network ensures that sensitive data associated with smart contracts remains confidential. The TEE provides encryption and isolation mechanisms that prevent unauthorized parties from accessing or tampering with the data.
  • Confidential Smart Contracts: Phala Network allows developers to build and execute smart contracts that process confidential data without exposing it on the public blockchain. The TEE ensures that sensitive data remains within the secure enclave, keeping it hidden from external observers.
  • Decentralized Private Computation: Phala Network enables decentralized private computation by utilizing the distributed nature of the blockchain. Smart contracts are processed within individual TEEs across the network, ensuring privacy while maintaining decentralization.
  • Trustless Verification: Phala Network incorporates zero-knowledge proofs to verify the integrity and correctness of computations executed within the TEE. This allows participants to trust the outcomes of computations without revealing the underlying sensitive data.
  • Secure Data Storage: Phala Network leverages TEEs to provide secure storage for sensitive data. The TEE ensures that the data is encrypted, protected from unauthorized access, and inaccessible to external parties.
  • Off-Chain Computing: Phala Network utilizes TEEs to perform off-chain computations securely. This reduces the computational burden on the main blockchain network while maintaining the privacy and security of the processed data.

By leveraging TEE technology, Phala Network ensures that smart contracts and associated data are processed in a secure and private manner. The TEEs provide a trusted environment for executing computations and safeguarding sensitive information. This enables developers and users to leverage the benefits of blockchain technology while maintaining data privacy and confidentiality within the network.

Conclusion

In this article, we got acquainted in detail with TEE technology and how it can be used in decentralized projects such as Phala Network.

In summary, a Trusted Execution Environment (TEE) is a secure and isolated environment that is designed to protect sensitive data and code from unauthorized access and manipulation. Phala Network uses TEE technology to provide a secure and private computation environment for the execution of smart contracts. The use of TEE technology in Phala Network provides increased privacy, security, and scalability, which makes it an attractive option for businesses and individuals who want to use blockchain technology in a secure and efficient manner.

Thank you for reading the article, I hope it was useful!😊

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