Phala Launches New Layer 2 Network on Ethereum

Polkadot-based parachain and verifiable computation platform Phala launched a new Layer 2 network on Ethereum in collaboration with infrastructure providers Succinct Labs and Conduit.

The Layer 2 rollup features both optimistic and zero-knowledge proofs, utilizing what’s known as OP Succinct. This technology, developed by Succinct Labs, enhances the capabilities of optimistic rollups (specifically those built on the OP Stack) by incorporating zero-knowledge proofs.

Phala developers utilized the rollup-as-a-service platform Conduit to facilitate the launch.

While Phala operates as a parachain within the Polkadot ecosystem, this move will expand its offerings to the Ethereum ecosystem. This development comes as Ethereum’s Layer 2 ecosystem continues to grow, with the number of Ethereum rollups surpassing 100 in 2024, marking a threefold increase from the end of 2023.

> “Phala Network’s move to Ethereum signifies a bold shift to deliver its cryptographic computing solutions on the largest smart contract platform,” the project noted.

Phala is well-known for providing a network for deploying applications, particularly in decentralized computing and AI areas. Security is facilitated through Trusted Execution Environments (TEEs), specialized hardware technology that ensures secure and private code execution. TEEs enable developers to deploy confidential smart contracts in specific dapps, such as AI agents.

Recently, Phala Network collaborated with the AI agent development platform ai16z to build Eliza’s TEE. This system integrates TEE technology into Eliza’s multi-agent framework, offering cryptographic verifiability and improved privacy to ensure secure interactions between AI agents.