Trusted Execution Environment ( TEE ): The Core Technology of the Web3 Era

Chapter 1: The Rise of TEE - A Key Piece in the Web3 Era

1.1 Introduction to TEE

Trusted Execution Environment ( TEE ) is a hardware-based secure execution environment that ensures data is not tampered with, stolen, or leaked during computation. It provides an additional layer of security for sensitive data and computations by creating an isolated area within the CPU that is independent of the operating system.

The core features of TEE include:

• Isolation: TEE runs in a protected area of the CPU, isolated from other system components.
• Integrity: Ensure that the code and data are not tampered with during execution.
• Confidentiality: Internal data of the TEE cannot be accessed externally.
• Remote attestation: It allows external verification that the code executed by the TEE is trustworthy.

Demand for TEE in Web3

In the Web3 ecosystem, TEE can solve the following key issues:

1. Blockchain Privacy Issues

   • User Privacy Protection: Prevent tracking of transaction and identity information
   • Enterprise Data Protection: Allows sensitive data to be securely stored on the blockchain

2. MEV( Maximum Extractable Value ) Issue

   • Prevent miners or validators from obtaining transaction information in advance for arbitrage.

3. Calculate Performance Bottlenecks

   • Provides efficient off-chain computing power, supporting complex tasks

4. Trust issues in decentralized physical infrastructure ( DePIN )

   • Ensure the credibility of device data and computational tasks

Comparison of 1.3 TEE with Other Privacy Computing Technologies

• TEE: High efficiency, low latency, suitable for high-throughput computing tasks
• ZKP( Zero-Knowledge Proof ): No need to trust third parties, but computational overhead is high.
• MPC( Multi-Party Computation ): No reliance on a single hardware, but with lower performance.
• FHE( Fully Homomorphic Encryption ): allows computation in an encrypted state, but with significant overhead.

Chapter 2: The Technical Insider of TEE - In-depth Analysis of Trusted Computing Architecture

Basic Principles of 2.1 TEE

TEE ensures security through the following mechanisms:

• Secure Memory: Use CPU internal encrypted memory area
• Isolated execution: Code runs independently of the main operating system.
• Encrypted Storage: Data is stored in a non-secure environment after encryption.
• Remote attestation: Allows verification that the code running on the TEE is trustworthy.

Comparison of Mainstream TEE Technologies 2.2

1. Intel SGX

   • Enclave-based memory isolation
   • Hardware-level memory encryption
   • Support remote proofing
   • Limitations: Memory constraints, vulnerable to side-channel attacks

2. AMD SEV

   • Full memory encryption
   • Multi-VM Isolation
   • Supports remote attestation (SEV-SNP)
   • Limitation: Only applicable to virtualized environments

3. ARM TrustZone

   • Lightweight architecture
   • Full system-level TEE support
   • Limitations: Lower security level, development is restricted

2.3 RISC-V Keystone: Open Source TEE Solution

• Based on the open-source RISC-V architecture
• Support for flexible and secure policy customization
• Expected to become a key infrastructure for Web3 computing security.

2.4 TEE data security mechanism

• Encrypted storage: Only applications within TEE can decrypt data stored externally.
• Remote attestation: verifying whether the code running on TEE is trustworthy
• Side Channel Attack Protection: Utilizing memory encryption, data access randomization, and other methods.

Chapter 3: The Application of TEE in the Crypto World - The Revolution from MEV to AI Computing

3.1 Decentralized Computing: TEE Solving Web3 Bottlenecks

• Akash Network: A decentralized computing marketplace powered by TEE.
• Ankr Network: Ensuring the security of cloud computing tasks through TEE

3.2 Trustless MEV Trading: TEE Provides the Optimal Solution

• Flashbots: Exploring TEE as a Trustless Transaction Ordering Solution
• EigenLayer: Ensuring fairness in the re-staking mechanism using TEE

3.3 Privacy-Preserving Computing and DePIN Ecosystem

Nillion network combines TEE and MPC to achieve:

• Data sharding encryption processing
• Privacy Smart Contract Development

3.4 Decentralized AI: TEE Protects Training Data

• Bittensor: Using TEE to protect the data privacy of AI training models
• Gensyn: Ensuring the security of decentralized AI computing environments through TEE

3.5 DeFi Privacy and Decentralized Identity

Secret Network implements TEE:

• Private Smart Contract Execution
• Decentralized Identity ( DID ) Information Security Storage

Chapter Four: Conclusion and Outlook - TEE Reshaping the Future of Web3

4.1 TEE promotes the development of decentralized infrastructure

• Solve trust, privacy, and performance issues in decentralized computing.
• Become the core technical support of decentralized computing networks

Business Model and Token Economic Opportunities of 4.2 TEE

• Decentralized Computing Market
• Privacy Computing Service
• Distributed Computing and Storage
• Blockchain Infrastructure Supply
• Tokenized computing resource exchange
• TEE Service Token Incentive Mechanism
• Decentralized identity and data exchange platform

The future development direction of 4.3 TEE in the cryptocurrency industry.

1. Deep integration with Web3

   • DeFi: Ensuring transaction privacy and contract security
   • Privacy Computing: Combined with technologies such as ZKP and FHE
   • Decentralized AI: Supports secure model training and inference
   • Cross-chain computation: Facilitating trustworthy cross-chain interactions

2. Hardware and Protocol Innovation

   • Next-generation hardware TEE solution
   • Integration with technologies such as MPC and ZKP
   • Decentralized Hardware Platform

3. Regulatory Compliance and Privacy Protection

   • Adaptation to multi-country privacy regulations
   • Verifiable privacy computing process

Summary

TEE technology will play an increasingly important role in the Web3 ecosystem, providing key support for decentralized computing, privacy protection, smart contracts, and other fields. It not only addresses the technical challenges currently faced by Web3 but will also give rise to new business models and value creation opportunities. In the next five years, with hardware innovation, protocol development, and regulatory adaptation, TEE is expected to become one of the core technologies driving the maturity and innovation of the Web3 ecosystem.