Polkadot-based Phala Network launches Ethereum Layer 2 rollup

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 has both optimistic and zero-knowledge proofs, leveraging what's known as "OP Succinct." This technology — developed by Succinct Labs — improves the capabilities of optimistic rollups (specifically those built on the OP Stack) by incorporating zero-knowledge proofs.

Meanwhile, Phala developers used the rollup-as-a-service platform Conduit to help initiate the launch.

While Phala operates as a parachain within the Polkadot ecosystem, the move will expand its offering to the Ethereum ecosystem. This comes as Ethereum’s Layer 2 ecosystem continues to grow. The number of Ethereum rollups, or Layer 2 chains, surpassed 100 in 2024, 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 widely known for providing a network for deploying applications, particularly in decentralized computing and AI areas. This security is facilitated through Trusted Execution Environments (TEEs), specialized hardware technology that ensures secure and private code execution. TEEs allow 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, providing cryptographic verifiability and improved privacy to ensure secure interactions between AI agents.