On the evening of May 8th, Math Wallet hosted the third episode of Math Show, featuring Marvin, CEO of Phala Network, who discussed "How to Add Privacy Mosaics to Blockchain?" The event was moderated by Pang Xiaojie, co-founder of PolkaWorld. Below is a summary of the key insights shared that night.
Understanding Blockchain Privacy Challenges
Blockchain technology revolutionized trustless transactions, but its transparency introduces limitations:
- Public Data Exposure: All on-chain data is visible, restricting sensitive applications (e.g., identity verification, confidential DeFi strategies).
- Smart Contract Constraints: Traditional privacy solutions (e.g., Zcash, Monero) only protect transactional privacy, not computational confidentiality.
Three Generations of Privacy Tech
| Generation | Example | Capability |
|------------|-----------------|-------------------------------------|
| 1st | Zcash, Monero | Transactional privacy |
| 2nd | Aztec | ERC-20 token privacy |
| 3rd | Phala Network | Confidential smart contracts |
Introducing Confidential Smart Contracts
Phala leverages Trusted Execution Environments (TEEs)—secure hardware enclaves in modern CPUs—to process encrypted data without exposing it.
Key Features of Phala
âś… Data Confidentiality: Encrypted computation within TEEs.
âś… High Performance: Parallel execution without Byzantine consensus.
✅ Cross-Chain Compatibility: Integrates with Polkadot’s ecosystem.
Case Study: Web3 Analytics (W3A)
Many blockchain projects rely on Google Analytics, risking centralized data control. W3A offers a decentralized alternative:
- End-to-End Encryption: Secure event tracking via a lightweight SDK.
- User Control: Manage/download personal data via a dashboard.
- Marketplace: Monetize data with privacy-preserving transactions.
Phala Token (PHA) Economics
- 80% Community Distribution: Incentivizes early adopters (TEE miners, developers, users).
- StakeDrop: Lock KSM/DOT to earn PHA (similar to Polkadot’s NPoS).
- Governance: Anonymous voting via flow democracy (delegable voting rights).
FAQs
How does Phala differ from Monero/Zcash?
Monero/Zcash anonymize transactions; Phala enables private smart contracts (like Ethereum’s programmability + privacy).
Can I mine PHA at home?
Yes! Any Intel SGX-compatible PC (post-2016) can join. No specialized hardware required.
Is TEE secure against hackers?
Intel’s SGX includes remote attestation—unauthorized nodes are auto-blocked.
👉 Join the Privacy Revolution
Conclusion
Phala bridges Web2 and Web3 privacy by combining TEEs, cross-chain interoperability, and decentralized governance. Whether you’re a developer, miner, or data owner, Phala’s ecosystem offers tools to reclaim data sovereignty.
Next Steps:
- Try W3A’s testnet.
- Participate in StakeDrop.
- Build on Phala’s confidential contract platform.
Stay tuned for Math Show #004!