Phala Network and Ava Protocol have officially partnered to raise the standard of confidentiality and security in the decentralized space. By integrating Phala’s Trusted Execution Environments (TEEs) with Ava Protocol’s automation framework, the partnership aims to solve the key problem of confidentiality in automated transactions, protecting sensitive data while ensuring smooth and secure operations in decentralized finance (DeFi) and Web3 applications.

This collaboration is focused on building a confidentiality-based foundation for event-driven automation and confidential transaction execution, leveraging the strengths of both protocols to deliver unmatched confidentiality protection to users.

Web3 Confidentiality Challenges
In the Web3 ecosystem, confidentiality remains one of the biggest challenges. Although decentralized systems rely on transparency, it often comes at the expense of user confidentiality. Sensitive data such as transaction amounts, contract interactions, and execution conditions are publicly disclosed, exposing users to risks such as targeted surveillance, data mining, and manipulation attacks, particularly Maximal Extractable Value (MEV) attacks.

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

A joint solution to the problem of confidentiality
The Phala-Ava partnership directly addresses these confidentiality concerns by combining the power of Phala’s cloud computing with the automation capabilities of Ava Protocol. Together, they ensure that users can securely automate and execute transactions while keeping sensitive data confidential.

How the partnership works:

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

Remote Verification for Security: Phala ensures that the integrity of the confidential environment is maintained through remote verification. This mechanism confirms that the automation module is running securely in the TEE, allowing users to trust the process without disclosing any sensitive data.

MEV Attack Protection: Ava adds an additional layer of confidentiality by integrating Flashbots Protect, which sends transactions directly to miners or validators, bypassing the public mempool. This protects against front-running attacks or manipulation of pending transactions, ensuring fair and confidential execution.

The Importance of Phala and Ava's Partnership
The collaboration between Phala Network and Ava Protocol is a significant step forward for Web3 confidentiality. By leveraging Phala’s confidentiality-protecting TEEs and Ava’s automation framework, they are setting a new standard for secure and confidential transaction execution. This partnership not only protects user transaction data, but also ensures that decentralized platforms remain trustworthy and honest, paving the way for a more secure Web3 future.

You Run the 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, confidential execution of decentralized applications and smart contracts. By offering TEE as a service, Phala ensures that transaction data remains confidential and secure while taking advantage of the transparency of blockchain technology.

More information about Phala Network can be found here.

The Ava Protocol
Ava Protocol is a modern automation platform designed for the decentralized world. Ava enables users to create “super-autonomous” transactions driven by events in DeFi and Web3. With Ava’s approach that prioritizes confidentiality and seamless integration with TEE Phala Network, the platform provides secure, automated transaction execution without compromising on confidentiality and security.

You can find more information about Ava Protocol here.

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