Article source: On-chain View
Many people are puzzled as to why PHA suddenly became so popular. To put it abstractly, even Phala Network might not have figured out how it suddenly became the chosen one. The rise of PHA is due to both chance and necessity; it is certainly not something any overt or covert scheme could orchestrate. There are three key points: TEE technology has been well-prepared, ai16z has embraced it, and the timing for AI Agents is just right.
1) The efforts of Phala Network in TEE technology are the 'inevitable' catalyst for this event. Why do I say this?
TEE (Trusted Execution Environment) is not a new concept, but it has always been considered 'niche' in the mainstream tech narratives of crypto over the past few years. For example, many high-performance chains are competing based on the advantages of languages like RUST and MOVE, and there has been a wave of ZK technology primarily. TEE, along with MPC, FHE, Blind Compute, and other cryptographic technologies, occasionally appears in the differentiated positioning of certain projects but is not on the same level as the popular ZK.
In fact, while mainstream chains focus on the efficiency of 'block space' (MEV, TPS, Gas, etc.), the ZK technology is only applied to the most basic trusted state changes between layer 1 and layer 2. The advantages of ZK technology in areas such as zkVM virtual machine architecture and zkSNARKs for chain data structure have not yet found their moment to shine, let alone the achievement of broader mass adoption.
The main reason is that previous technological narratives pursued a purely 'on-chain' environment. ZK is the first step in separating off-chain computation from on-chain verification, but the bigger goal is still to serve 'on-chain'. The trusted execution environment (TEE) naturally acts as the 'preprocessing' step of the off-chain secure enclave environment.
It can serve on-chain, and is the result of top projects like Unichain and Flashbot gradually expanding the new narrative of Pre-confirmation. In other words, without integrating with chains, TEE is undoubtedly a mature technology from pure web2. When combined with chains, it can provide trusted preprocessing, isolated privacy computing, and other clever applications.
Therefore, those who dare to first apply TEE technology in the blockchain field must be able to endure solitude while possessing unique and wise vision. In this regard, Phala Network indeed has a mature TEE solution, there is no doubt about it.
2) Phala Network unexpectedly found a mysterious client named 'ai16z' that adopted its TEE solution, which is the biggest 'coincidental' factor behind PHA's surge.
After seeing the official Twitter of AI-Pool regarding AI Agents independently issuing tokens, I immediately posted a technical explanation of the TEE solution (TEE allows AI to autonomously manage private keys and sign applications in a usable yet invisible secure enclave) and the historic opportunity that the collaboration between Phala and ai16z might present. (That is also an excellent entry point for most retail investors.)
Currently, ai16z's super commercial big IP status in the AI Agent track needs no elaboration. The adoption of Phala's TEE solution by AI-POOL at least indicates two things:
1. Phala's TEE solution has many mature commercial cases and was selected by ai16z.
2. Phala's TEE solution will be the first to benefit from the commercial vision of AI Agent PumpFun and the trend of AI-controlled private key token issuance.
Understanding this naturally leads to realizing what Phala can gain from the phenomenon of AI Pool independently issuing tokens. It’s a very natural logic: as the wave of AI Agents issuing tokens continues to drive forward, the private key management and remote authentication services provided by TEE will become a 'must-have' business. Meanwhile, a complete set of on-chain verifiable consensus adapted for TEE's off-chain environment will be a bonus, truly a new infrastructure for the AI Agent era.
So, I may not truly understand Phala Network when I jumped into PHA, but that doesn't matter. I think I understand better the market potential and incremental opportunities that may arise from AI Agent + TEE, AI Agent + Chain.
3) What truly gave Phala Network a push was the currently booming narrative surrounding AI Agents. I have pinned several articles about the AI Agent narrative on my Twitter profile highlights, and new friends can take a look; those articles repeatedly convey the message: 'Don't miss out, don't miss out, don't miss out.'
Because the AI Agent has evolved from AI MEME, to the emergence of launchpad platforms like Virutual and Vvaifu, to individual AI projects like AIXBT and Zerebro, and frameworks and standards like ELIZA and ARC, until an old chain like Phala is blown onto the trend, everything is rapidly evolving beyond everyone's imagination. Why?
Just one point: this is a historic opportunity, a major upward wave comparable to DeFi Summer. The explosion of innovative gameplay during this process, the influx of hot money, and the opportunities presented by information asymmetry are bound to remain 'hot and spicy'.
Thus, I shout the slogan loudly, hoping that more retail investors can seize the Alpha growth opportunities and that more project parties can break out of the past narrative of 'delivery incapacity' tied to pure VC coins.
A new narrative whirlwind has started, and the purpose is not merely to blow dust (chicken feathers) in your face, but to lift you onto the trend, to become that little piglet rolling in wealth.
By the way, the underlying message of this statement is: don't worry about missing out on PHA, because Phala is merely one participant in the trend, the first to reap the benefits of the trend. Following the narrative evolution logic and direction I outlined, believe me, there will certainly be more opportunities to come.
