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About the Author
Alexander Zaidelson is the CEO of Secret Labs, or SCRT, specializing in scaling technologies to ensure privacy across Web3. Previously, he served as Chief Business and Data Officer of Israel-based decentralized exchange (DEX) VirtuSwap, where he continues as a strategic advisor.
The Value of Decentralization in Web3
Blockchain technology delivers decentralization, which embodies robustness, censorship resistance, and a bottom-up support system crucial for securing and democratizing transformative applications. This concept holds immense value across major sectors such as finance (DeFi), physical infrastructure (DePIN), social networks (DeSo), scientific research (DeSci), artificial intelligence, and more. However, the challenge lies in safeguarding sensitive raw data demanded by these applications while harnessing the benefits of decentralization.
The Significance of Decentralized Confidential Computing (DeCC)
Decentralized confidential computing, or DeCC, provides a solution to the critical issue of data confidentiality in Web3. By protecting data during processing, DeCC allows for the execution of computations on data without exposing it to the public. This distinct category of technology ensures compliance and facilitates corporate use cases, revolutionizing the application of blockchain technology.
Integrating Confidential Computing with Blockchain
Confidential computing technologies like Zero-Knowledge Proofs (ZKP), Multi-Party Computation (MPC), Fully-Homomorphic Encryption (FHE), and Trusted Execution Environments (TEE) enable decentralized confidential computations on blockchains. Companies like Microsoft, Google, IBM, and NVIDIA already offer potent confidential computing solutions, highlighting its growing relevance in the Web3 domain.
Use Cases Enabled by DeCC
- Confidential trading strategies for DeFi
- AI model training on confidential data
- AI models with confidential parameters
- Sealed-bid auctions for DeFi, DeSci, and NFT worlds
- NFTs with protected data for true ownership in Web3
- Confidential on-chain voting for DAOs
- Decentralized on-chain identity without data exposure
- Multiple gaming use cases
The Role of Technology in DeCC
Leading technologies like TEEs, MPC, ZKPs, and FHE empower smart contracts to execute confidential computations securely and protect user data. Projects such as Oasis, Phala, Marlin, Fairblock, Partisia, Aztek, Aleo, and others utilize these technologies to enhance the capabilities of decentralized applications.
The Future of DeCC
DeCC represents a crucial component of the Web3 stack that will drive the development of innovative decentralized applications. By enabling control over data access, ensuring integrity verification, and encrypting sensitive information in a decentralized manner, DeCC paves the way for broader adoption and advancement in blockchain technology. As the industry emphasizes modularity in blockchains, DeCC stands as a key element in achieving the full potential of decentralized networks for individuals and institutions worldwide.
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