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Phala Network: A Con dential Smart Contract Network Based ...

Phala Network : A Confidential Smart ContractNetwork Based on PolkadotHang YinShunfan ZhouJun JiangOctober 17, 20191 IntroductionNowadays the security of the permissionless blockchain is typically guaranteedby state replication over consensus algorithms. Though this approach workswell for blockchain, it also means that everything on the blockchain ispublic,which brings a problem: confidential information cannot be handled by theblockchain. The lack of confidentiality greatly limits the usage of blockchain inprocessing sensitive business and user data. For example, stock traders usuallydo not want to reveal their positions or order history.

Phala Network aims to build a platform for general-purpose privacy-preserving Turing-Complete smart contracts. The basic requirements for such a platform could be as follows. Con dentiality. Unlike the existing blockchains for smart contracts, Phala Network avoids the leakage of any input, output, or intermediate state of con- dential contract.

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