← Protocols
Phala Network
AI Agent / Web3·EVM · Multi-chain

Phala Network

01Description

Phala Network helps teams ship privacy-sensitive AI agents and backend workflows inside confidential VMs instead of exposing prompts, signing keys, or model inputs on a standard cloud host. This protocol reference now leads with the builder questions searchers actually have: when Phala fits for trusted execution, how dstack and remote attestation shape deployment, and what operational tradeoffs matter before a team commits to TEE-backed infrastructure.

02Builder workflow highlights
  • 01Package the agent or backend worker as a Docker image, then map secret handling and signing flows so the workload can move into a Confidential VM without exposing raw keys on the host.
  • 02Use the dstack SDK to derive sealed keys inside the CVM and bind attestation payloads to the exact outbound action or request hash that downstream verifiers need to trust.
  • 03Plan for remote attestation verification, image-measurement changes, and replay protection before shipping production automation on top of TEE-backed execution.
  • 04Keep a local simulator or non-TEE fallback for development, but document where behavior changes once the workflow depends on real Phala Cloud hardware attestation.
03Best for
  • 01TEE-protected agent keys
  • 02verifiable agent execution
  • 03private LLM inference (GPU TEE)
  • 04ERC-8004 trustless agents
  • 05Docker-native confidential deployment
04Install
  • pnpm add @phala/dstack-sdk
  • pnpm add -g phala-cloud-cli
05Environment variables
VariableScopeDescription
PHALA_CLOUD_API_KEYServerAPI key for Phala Cloud used by `phala` CLI to deploy and manage CVMs.
DSTACK_SIMULATOR_ENDPOINTServerOptional — local dstack simulator URL (e.g. http://localhost:8090) for dev without TEE hardware.
06Prompt snippet
Use Phala to run an agent inside a Confidential VM (CVM) so its keys never leave the TEE. Package the agent as a Docker image, mount the dstack socket via `volumes: - /var/run/dstack.sock:/var/run/dstack.sock` in `docker-compose.yaml`, and deploy with `phala deploy`. From inside the container, derive a deterministic agent wallet with `client.deriveKey('agent/wallet')` from `@phala/dstack-sdk` (the key is sealed to the CVM image hash) and sign transactions with viem. Generate an attestation per outbound action via `client.tdxQuote(reportData)` where `reportData` is a hash of the request — relayers / verifiers check the quote against Intel's PCCS so off-chain consumers know the agent ran the audited image. For private LLM inference, route to a GPU-TEE endpoint instead of public OpenAI.
07Gotchas
  • ⚑Attestation quotes must be verified against the full Intel TDX certificate chain (PCCS) — accepting just the quote without chain validation is unsafe.
  • ⚑Sealed keys are bound to the image measurement — any code change rotates the key, breaking continuity unless you migrate state via a key-derivation hierarchy.
  • ⚑GPU TEE inference is supported on a limited set of GPUs (H100/B200 confidential mode); cheaper inference providers are not equivalent.
  • ⚑CVMs cost more than plain VMs and have noticeable cold-start latency; for chatty agents, keep the CVM warm.
  • ⚑Logs from inside a CVM may leak prompts/keys if printed unredacted — treat the agent like a server-side wallet, not a debug console.
  • ⚑Local dev without `DSTACK_SIMULATOR_ENDPOINT` will hard-fail on `tdxQuote` calls; gate TEE-specific code behind a feature flag.
  • ⚑Replay protection is your job — bind a nonce or chain block hash into `reportData` so a previously verified quote cannot be replayed.
09Alternatives