The Philosophy Behind Confidential Computing

Imagine living in a world of glass houses—where everyone’s actions, decisions, and transactions are visible to all. In the business world, this level of transparency is neither practical nor desirable. Zaidelson argues that while public blockchains have introduced a new era of accountability, they also expose businesses and individuals to unnecessary risks.

"Confidential computing is about selective disclosure," he says. "There are moments where transparency is needed, but there are also moments where confidentiality is crucial."

SCRT Labs is not advocating for one extreme over the other but aiming to strike a balance between public trust and protecting sensitive data.

For enterprises, selective disclosure is essential. Companies need to share data with stakeholders, auditors, or regulators but must also safeguard critical business information from competitors or malicious actors. This challenge is particularly pronounced in decentralized systems, where transparency is often the default.

Zaidelson’s philosophy pushes back against the notion that blockchain inherently means full disclosure. Instead, SCRT Labs develops technology that allows businesses to choose what to disclose and when, making privacy a strategic advantage rather than an obstacle.

Why Decentralized Confidential Computing is Inevitable

As the digital landscape evolves, the need for decentralized confidential computing becomes more urgent. Traditional centralized solutions will continue to pose risks like data breaches, censorship and overall enormous dependency on a few monopolistic players. And decentralized solutions that do not protect user data will never be adopted by billions of people and businesses.

Zaidelson believes that decentralized confidential computing is inevitable because it reconciles two competing demands: the growing push for decentralization and the absolute need for protection of users’ data. The result is a system that combines transparency with the protection of sensitive information.

"The balance comes from allowing selective transparency. You don’t want to build opaque systems where no one can see what’s happening, and you also don’t want to force everyone into those glass houses.”

Secret Network enables this balance by using hardware-based secure enclaves to keep sensitive data private while allowing for verification and trust.

This approach has significant implications for industries where privacy is not just a preference but a legal obligation. Healthcare companies, for example, must comply with strict regulations around patient data confidentiality. Financial institutions face similar requirements for sensitive transactions. SCRT Labs is building the infrastructure that allows these organizations to comply with privacy laws while maintaining public trust.

Four Key Technologies Powering Confidential Computing

Zaidelson outlines four fundamental technologies that underpin decentralized confidential computing:

1. Secure Multi-Party Computation (MPC):

MPC allows multiple parties to jointly compute a function while keeping their inputs private. This is crucial for decentralized applications where different entities need to collaborate without sharing sensitive information.

1. Zero-Knowledge Proofs (ZKPs):

ZKPs allow one party to prove they know a piece of information without revealing the information itself. This technology enables verification processes essential for trust in decentralized systems while maintaining privacy.

1. Fully Homomorphic Encryption (FHE):

FHE allows computations to be performed on encrypted data without decrypting it. This means enterprises can analyze and process sensitive data without ever exposing it, making it ideal for sectors like finance and healthcare.

1. Trusted Execution Environments (TEEs):

TEEs are hardware-based enclaves that execute code in a secure, isolated environment. TEEs ensure that sensitive data can be processed without being exposed, providing confidentiality even in decentralized systems. Secret Network relies on TEE for its confidential computing.

Why SCRT Labs?

Zaidelson's decision to join SCRT Labs in August 2023 was driven by his deep engagement with decentralized finance (DeFi) and confidentiality in blockchain. Before SCRT Labs, Zaidelson worked on a variety of blockchain projects, where privacy and decentralized systems became central to his thinking. He was drawn to SCRT Labs because it uniquely combines confidentiality with the power of smart contracts and DeFi.

"SCRT Labs is a combination. It has this confidentiality angle, which I internalized very much at Beam, and it also has the power of smart contracts and DeFi in it.

This mix was an ‘irresistible’ opportunity for him to build on his past experiences.

Looking Forward

As the first blockchain offering native privacy-preserving smart contracts, SCRT Labs is pioneering the next generation of decentralized applications (dApps) that prioritize confidentiality.

Looking ahead, Zaidelson is excited about SCRT Labs' new roadmap, which includes significant upgrades to scalability, interoperability, and user experience. The network is currently based on CPUs for confidential data processing, but the upcoming integration of Confidential Computing GPUs will greatly expand its capabilities.

"GPUs are much stronger devices that can perform calculations for exciting use cases like AI, advanced optimization, video rendering, genomic calculations and more.”

With increasing availability of GPUs with built-in support for Confidential Computing,, SCRT Labs will offer secure, high-performance computing solutions for industries requiring data confidentiality.

This development aims to provide a permissionless, decentralized and confidential alternative to the large centralized platforms that currently dominate the world’s data. By integrating GPU power with confidential computing, SCRT Labs envisions a future where businesses can run complex applications without relying on a centralized cloud provider and without fearing for their data.

The Future of Confidential Computing

For Zaidelson and SCRT Labs, the future is clear: decentralized confidential computing is not a niche technology—it’s the next logical step in the evolution of blockchain. By offering a platform where businesses can maintain privacy while benefiting from decentralization, SCRT Labs is positioning itself at the forefront of this emerging industry.

As more enterprises recognize the need for both confidentiality and transparency, Zaidelson is confident that decentralized confidential computing will become a standard part of digital infrastructure.

"It’s not a question of if," he says, "but when."