The layer-two solution combines Trusted Execution Environments (TEEs) and blockchain to enhance confidentiality and scalability for smart contracts. Smart contracts operate outside the blockchain, with the blockchain serving as a dispute resolution layer. Users compile contracts and send encrypted data to a TEE-powered node, which processes the contracts and returns results to the blockchain for verification. This ensures that intermediate contract states remain hidden, thus preserving privacy. Successful execution relies on secure input and output operations between the TEE and blockchain.
Layer-two solutions enhance smart contract confidentiality and scalability by executing operations outside the blockchain, utilizing Trusted Execution Environments (TEEs) as intermediaries for secure contract processing.
In a layer-two system, a user compiles a smart contract, uploads binary to a TEE, sends encrypted input data, and retrieves blockchain-verified results securely.
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