Phala Network has made history by launching the first Op-Succinct Layer 2 (L2) rollup on Ethereum, setting a new standard for blockchain scalability and privacy. This pioneering technology combines Optimistic Rollup frameworks with Zero-Knowledge Proofs (ZKPs) to deliver a fast, cost-effective, and secure Layer 2 solution. Phala’s rollup not only advances Ethereum’s technical capabilities but also introduces its TEE-based cloud computation to the ecosystem, unlocking transformative potential for AI use cases.
Phala’s rollup: first-ever OP + ZK technology
Phala’s rollup is built on the Op-Succinct framework, created in partnership with Succinct Labs and Conduit. This rollup is the first to successfully integrate ZKPs with Ethereum’s OP Stack and go live on mainnet.
By leveraging Succinct’s SP1 zkVM, the rollup achieves type-1 zkEVM compatibility, ensuring full EVM equivalence while drastically reducing transaction finality times from seven days to just hours. With Conduit’s Rollups-as-a-Service platform, Phala rapidly deployed the rollup, avoiding the need for costly custom infrastructure development.
“This launch is a landmark moment for both Ethereum scalability and privacy,” said Phala Network in a statement. “By bringing our TEE technology to Ethereum, we are enabling the next wave of decentralized applications, particularly in AI.”
TEE Cloud meets Ethereum: A game changer for developers
Phala’s integration into Ethereum introduces its TEE cloud computation services, allowing developers to access secure and scalable infrastructure for building privacy-preserving decentralized applications (dApps). Trusted Execution Environments (TEEs) provide cryptographic guarantees for off-chain computation, enabling secure and auditable execution for sensitive workloads.
This move also transforms Ethereum into a hub for verifiable AI applications like ElizaOS and Spore.fun, a rapidly growing use case requiring robust infrastructure. Phala’s TEE services are particularly suited for AI use cases that demand high-throughput, low-latency, and secure payment settlement—features that align perfectly with Ethereum’s expanding ecosystem.
AI Use cases lead the charge
AI Agents + TEE: Secure and private execution
Phala’s TEE infrastructure allows AI agents, such as the Eliza Agents, to operate in a fully secure and private environment. By deploying these agents into TEEs using the Eliza Framework with the TEE Plugin, developers can ensure the confidentiality of sensitive data while maintaining high performance.
Key capabilities include:
- Secure deployment: Any Docker container can be converted into a Confidential VM (CVM) image and deployed on Phala’s supported TEEs.
- Verifiable trust: Remote attestation ensures that the agent is running in a secure environment, while the chain-of-trust visualization in a Web UI adds an additional layer of transparency.
- Automatic security: Features like RA-HTTPS wrapping and content-addressable domains (e.g., 0xABCD.dstack.host) simplify secure communication for AI agents.
- Decentralized root-of-trust: Phala’s infrastructure decouples app execution and data persistence from specific hardware, offering reliability and scalability.
This secure and private execution environment is ideal for applications such as autonomous decision-making agents, sensitive AI workloads, and interactive AI systems requiring real-time data privacy.
Decentralized AI infrastructure: Scalable and trustless
Phala’s infrastructure enables developers to build and operate decentralized AI infrastructures at scale. Using Phala’s TEE-powered cloud and its integration with Ethereum, AI systems can now operate securely without relying on centralized providers like AWS or Azure.
Highlights of this decentralized infrastructure include:
- Confidential Computing at Scale: Phala’s TEE cloud provides on-demand access to secure hardware, including Intel TDX, AMD SEV, and NVIDIA GPUs, allowing developers to run intensive AI workloads with ease.
- Global Reach, Decentralized Trust: By leveraging Ethereum’s decentralized nature and Phala’s hybrid TEE architecture, AI infrastructures can eliminate reliance on centralized trust and provide auditable computation.
- Enhanced Developer Experience: The Dstack SDK streamlines the process of deploying and managing AI applications in confidential environments, reducing complexity and ensuring security best practices by default.
From training machine learning models to deploying real-time AI-driven services, Phala’s decentralized AI infrastructure offers developers the tools to build scalable, secure, and cost-effective AI solutions.
Why Phala chose Ethereum
Originally launched as a Polkadot parachain, Phala transitioned to Ethereum to take advantage of its robust developer tools and active ecosystem. The Op-Succinct rollup allows Phala to scale its TEE network efficiently while offering full compatibility with Ethereum’s infrastructure, including smart contracts and indexing.
This strategic shift positions Phala to serve the Ethereum community with affordable, secure, and efficient computation. Developers can now leverage TEE technology to build advanced applications without grappling with the complexities of hardware or cryptographic proof generation.
Looking ahead: The future of AI on Ethereum
The launch of Phala’s rollup is a significant milestone in Ethereum’s evolution, paving the way for a future where decentralized AI applications thrive. By combining the strengths of TEE technology and ZK rollups, Phala is spearheading the adoption of privacy-preserving AI applications on blockchain.
With this launch, Ethereum developers can now build autonomous AI agents, verifiable computation platforms, and decentralized AI infrastructures—all while benefiting from the security and scalability of Phala’s Op-Succinct rollup.