What Is Phala Network?

Decentralized Computing Platform in Blockchain

Phala Network is a decentralized cloud computing platform grounded in blockchain and privacy preserving technologies. Built using Trusted Execution Environments (TEEs), it enables confidential smart contracts and private off chain computations that you can verify on chain.

https://phala.com/

Originally launched as a Polkadot parachain, Phala benefits from Polkadot’s shared security and interoperability. Its architecture co locates a Substrate based chain with secure off chain execution, connected via dedicated bridge nodes.

Phala runs sensitive computations inside secure enclaves hardware protected zones ensuring code execution remains private and tamper resistant, even from system operators.

pRuntime executes smart contracts securely within TEEs, while pHost (pherry) bridges the Phala blockchain to pRuntime by validating inputs and outputs.

These are TypeScript/JavaScript contracts that enable on chain logic to manage off chain AI agents, leveraging Phala’s secure compute layer.

Recent Milestones & performance (as of Q1 2025):

  • Phala Cloud launched in early 2025, enabling deployment of Confidential Virtual Machines (CVMs); over 1,084 CVMs deployed.
  • Shifted from Polkadot parachain to an Ethereum rollup model (Phala 2.0), unlocking faster and more scalable integration with Ethereum ecosystem.
  • GPU TEE support launched, enabling confidential AI deployments on NVIDIA H100/H200 with verifiable attestations, less than 20% performance overhead.

Use Cases & Applications:

  • Confidential AI: Enterprises and platforms can deploy AI with strong privacy (e.g. healthcare, fintech). GPU TEE support makes model deployment secure and auditable.
  • Private Smart Contracts: Sensitive business logic runs privately in TEEs, yet fully verifiable.
  • Autonomous AI Agents: Controlled via on chain contracts, they enable secure data access and decision making off chain.
  • Decentralized Cloud: Phala Cloud offers secure infrastructure with decentralized trust an alternative to centralized cloud vendors.

Offers scalable compute via DStack and Phala Cloud, supporting frameworks like Intel SGX, AMD SEV, NVIDIA TEEs, making it easy to deploy AI models and applications with privacy.

Key advantages include privacy preserving AI in secure enclaves, verifiable trustless execution, scalable off chain compute with on chain validation, interoperability across Polkadot and Ethereum, and easy deployment via Docker/CLI.

Token Utility: PHA

  • Sizing the Network: Workers and gatekeepers stake PHA tokens to participate securely and earn rewards.
  • Ecosystem Currency: PHA pays for compute services, staking, and governance.

Phala Network stands at the intersection of privacy, decentralization, and scalable compute. It enables developers to build applications with confidentiality baked in, whether through AI, secure smart contracts, or agent based experiences all while ensuring verifiability and interoperability.