Phala Network and Ava Protocol have officially joined forces to elevate confidentiality and security standards in the decentralized space. By integrating Phala’s Trusted Execution Environments (TEEs) into Ava Protocol’s automation framework, the partnership aims to address the critical need for confidentiality in automated transactions, safeguarding sensitive data while ensuring seamless, secure operations across decentralized finance (DeFi) and Web3 applications.

This collaboration focuses on building a confidentiality-first foundation for event-driven automation and confidential transaction execution, leveraging the strengths of both protocols to empower users with unparalleled confidentiality protection.

The Confidentiality Challenges in Web3

In the Web3 ecosystem, confidentiality remains one of the biggest challenges. While decentralized systems thrive on transparency, this often comes at the expense of user confidentiality. Sensitive data such as transaction amounts, contract interactions, and execution conditions are exposed to the public, making users vulnerable to risks like targeted surveillance, data mining, and manipulation attacks, especially Maximal Extractable Value (MEV) front-running.

MEV attacks allow malicious actors to reorder or exploit pending transactions for profit, undermining the fairness and security of decentralized platforms. To create a truly decentralized and fair environment, it’s essential to develop solutions that provide confidentiality protection without compromising the integrity and trustlessness of the network.

Addressing the Confidentiality Problem Together

The Phala-Ava partnership tackles these confidentiality issues head-on by combining the power of Phala’s confidential compute cloud with Ava Protocol’s advanced automation capabilities. Together, they ensure that users can securely automate and execute transactions while maintaining the confidentiality of sensitive data.

How the Partnership Works:

• Confidential Transaction Execution with TEEs: Ava Protocol’s automation logic, including contract interactions and triggers, is securely processed within Phala Network’s Confidential Virtual Machines (CVMs). These CVMs run inside a TEE, keeping all sensitive information confidential throughout the transaction process. Only the final outcome, such as a token transfer or contract execution, is shared with the blockchain.

• Remote Attestation for Security: Phala ensures that the integrity of the confidential environment is maintained through remote attestation. This mechanism validates that the automation module is running securely within the TEE, allowing users to trust the execution without exposing any confidential data.

• Protection Against MEV Attacks: Ava adds an additional layer of confidentiality by integrating Flashbots Protect, which routes transactions directly to miners or validators, bypassing the public mempool. This prevents malicious actors from front-running or manipulating pending transactions, ensuring fair and confidential execution.

The Significance of Phala and Ava's Partnership

The collaboration between Phala Network and Ava Protocol is a significant step forward for confidentiality in Web3. By leveraging Phala’s confidentiality-preserving TEEs and Ava’s automation framework, they set a new benchmark for secure and confidential transaction execution. This partnership not only protects users’ transaction data but also ensures that decentralized platforms remain trustworthy and fair, paving the way for a more secure future in Web3.

About Phala Network

Phala Network is a leading Web3 infrastructure provider focused on confidential computing. Phala’s Confidential Virtual Machines (CVMs) and TEE-based cloud enable secure, confidentiality-preserving execution of decentralized applications and smart contracts. By offering TEE-as-a-service, Phala ensures that transaction data remains confidential and secure, while still leveraging the transparency of blockchain technology.

Learn more about Phala Network here.

About Ava Protocol

Ava Protocol is a cutting-edge automation platform designed for the decentralized world. Ava enables users to create event-driven, autonomous “super-transactions” across DeFi and Web3. Through Ava’s confidentiality-first approach and seamless integration with Phala Network’s TEEs, the platform provides secure, automated transaction execution without compromising on confidentiality or security.

Learn more about Ava Protocol here.