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

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. TEE provides additional protection for sensitive data and computations by creating an isolated area within the CPU that is independent of the operating system and applications.

The core features of TEE include:

• Isolation: Runs in a protected area of the CPU, isolated from the operating system and other applications.
• Integrity: Ensure that the execution process of code and data is not tampered with
• Confidentiality: Internal data cannot be accessed externally, including by device manufacturers.
• Remote Proof: Can be externally verified that the executed code is trustworthy

2. The Application of TEE in Web3

TEE can solve multiple problems faced by the current blockchain and decentralized applications:

2.1 Privacy Protection

Traditional blockchains are completely transparent, making user privacy and corporate data susceptible to leakage. TEE can protect user data through privacy smart contracts, allowing only authorized users to access the computation results.

2.2 MEV issue

TEE can sort transactions in a private environment, preventing miners from seeing transaction details in advance to engage in arbitrage.

2.3 Calculation Performance Bottleneck

TEE can serve as a core component of decentralized computing networks, allowing smart contracts to outsource complex computational tasks to a trusted environment for execution.

DePIN trust issues 2.4

In a decentralized physical infrastructure network, TEE ensures the credibility of data and computing tasks, addressing fraud issues.

3. Comparison of TEE Technologies

Mainstream TEE technologies include:

• Intel SGX: Enclave-based memory isolation, supports remote attestation
• AMD SEV: Suitable for virtualized environments, providing VM-level encryption protection
• ARM TrustZone: Widely used in mobile devices, providing isolation between Secure World and Normal World.
• RISC-V Keystone: Open-source TEE solution that allows for customizable TEE mechanisms.

4. The Application of TEE in the Web3 Ecosystem

4.1 Decentralized Computing

Platforms like Akash and Ankr utilize TEE to provide privacy computing and trusted computing markets.

4.2 MEV protection

Flashbots and EigenLayer explore TEE as a key technology for trustless transaction ordering.

4.3 Privacy Computing Network

Nillion combines TEE and MPC to achieve data privacy protection and supports privacy smart contracts.

4.4 Decentralized AI

Bittensor and Gensyn use TEE to protect AI training data and model privacy.

4.5 DeFi Privacy

Secret Network uses TEE to protect smart contract execution, enabling private transactions.

5. The Future Development of TEE

In the next 5 years, TEE will develop in the following directions:

• Deeply integrated with Web3, applied in fields such as DeFi, privacy computing, and decentralized AI.
• Hardware and protocol innovations, such as RISC-V Keystone, Intel TDX and other new solutions
• Adapt to global privacy protection regulations and provide compliant privacy computing solutions.

TEE will become the core technology driving the maturity and innovation of the Web3 ecosystem, giving rise to new business models and token economic opportunities.