The rapidly changing world of crypto is increasingly embracing the concept of artificial intelligence (AI). This innovation is transforming many cryptographic projects, including renowned names such as Bittensor, Near, AR, and Render. The trend has taken the invention of AI Agents to a new level, where AI-powered bots can generate cryptocurrencies and interact on social networks. Examples of this technology include meme coins like GOAT and Fartcoin, and the Virtuals Protocol, which integrates AI in gaming to manage NPC’s. However, today we shine a spotlight on the emerging technology of Trusted Execution Environments (TEE).
TEE’s act as secure digital vaults integrated into devices such as smartphones or PCs. This secure and isolated environment allows sensitive data to be processed without the risk of exposure or compromise, even if a virus were to take control of the operating system. TEE’s function as a black box where data is processed, but only the result is output, keeping the content secure.
At present, two cryptocurrencies, namely Phala Network $PHALA and Marlin $POND, are utilizing this technology. Let’s delve into these in detail.
Phala Network: Privacy and Sensitive Data
Phala Network harnesses TEE technology to provide a blockchain designed for private computing. Here, TEEs enable network nodes to process sensitive data without exposing them to anyone – not even the node itself. This approach addresses one of the limitations of traditional blockchains, where total data transparency can be problematic for applications handling personal or confidential business information.
With Phala, sensitive data is protected throughout the processing journey. The network also supports the creation of private smart contracts which keep user information secure without making it public. This feature is absent in the smart contracts of conventional blockchains.
Furthermore, Phala aspires to become a decentralized alternative to traditional cloud computing services. The TEEs allow AI models to execute on sensitive data without making them public, thereby protecting both the data and the models.
Phala’s environment is decentralized, reducing the need to rely on centralized vendors such as Google or Amazon. This opens the door to innovative solutions in sectors like healthcare, where medical data can be analyzed while preserving patient privacy.
The native token of Phala, $PHA, is at the heart of its economy. It is used to pay for private computing services and reward the nodes that provide them.
Marlin: Speed and Security
Marlin’s (POND) use of Trusted Execution Environments (TEEs) aligns with Phala Network but with a fundamental difference. While Phala focuses on data protection and privacy, Marlin uses TEEs with another critical objective: speed.
Marlin aims to overcome a historical limitation of the blockchain: the inability to handle complex calculations without overloading the network or increasing transaction costs. Thanks to the partnership with the Oyster platform and TEEs, calculations are shifted off-chain into a secure and isolated environment. This not only preserves data integrity but also achieves higher processing speed.
Marlin’s native token, $POND, hasn’t experienced the same level of success as $PHA this year, and has appreciated by only 27%. A performance that makes the token very appealing in the event of a new Bull Run.
Conclusions
The technology of TEEs, especially in the blockchain sector, is still in its infancy and has its downsides. Processors are vulnerable to hardware attacks or could be compromised via firmware. Furthermore, they rely on manufacturers (Intel, ARM, AMD) who often have closed-code and are challenging to verify.
Nevertheless, the potential of this technology, both in terms of security and speed, is immense and yet to be fully explored. This could bring significant benefits to the crypto and blockchain world. Therefore, these two cryptocurrencies, despite their high-risk nature due to their low capitalization, could gain significant interest with the onset of a Bull Run.
As an alternative, both tokens are available on Uniswap and similar DEXs, accessible via crypto wallets like Best Wallet or Metamask.
FAQS
What are Phala Network and Marlin?
Phala Network and Marlin are cryptocurrencies that utilize Trusted Execution Environment (TEE) technology. Phala Network is designed for private computing, allowing for the secure processing of sensitive data within the network. Marlin, on the other hand, uses TEEs to enhance speed in blockchain processing.
What is the purpose of TEE technology?
TEE technology functions as a secure digital vault that allows sensitive data to be processed without the risk of being exposed or compromised. It’s used in devices such as smartphones or PCs. This makes it a crucial technology for applications that handle personal or confidential business information.
How do Phala Network and Marlin differ in their use of TEE technology?
While both cryptocurrencies use TEE technology, Phala Network focuses on data protection and privacy, while Marlin harnesses TEEs for enhanced processing speed.
Who are the manufacturers of TEEs?
The production of TEEs relies on manufacturers such as Intel, ARM, and AMD. These manufacturers often have closed-code and are difficult to verify.
