---
id: phala-network
title: Phala Network
description: Privacy-preserving cloud computing.
image: /img/partners/phala-network.jpg
website: https://phala.network/
twitter:
tags: ['Company']
hide_table_of_contents: true
---

# Phala Network

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  <img src="/img/partners/phala-network.jpg" alt="Phala Network logo" />
</div>

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.

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## 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.

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## 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.

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## 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](https://github.com/elizaos-plugins/phala-tee) enables TEE-backed memory storage and document processing for agents, featured in the [Eliza starter kit](https://github.com/elizaos/eliza-starter).

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## 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.

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## 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.

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## Links

- **Website**: [https://phala.network](https://phala.network)
- **GitHub**: [Phala-Network](https://github.com/Phala-Network)
- **Documentation**: [Phala Cloud Docs](https://docs.phala.network)
- **Partnership Announcements**: [Eliza V2 on Phala](https://phala.network/posts/launch-eliza-v2-beta)