It is not a new thing that blockchains were built to be transparent. On Bitcoin and Ethereum, every transaction is published on a public ledger. That design helps anyone verify balances, audit activity, and trust that the system works without a central authority. But full transparency has a cost: it exposes patterns about who paid whom, when, and how much. With enough on-chain breadcrumbs and the growing reach of blockchain analytics, it's often possible to connect addresses to real identities or business operations. Wallet history can reveal salaries, supplier lists, investment strategies, or even health-related purchases.
To reduce those risks, privacy-focused blockchains emerged. Monero and Zcash pioneered techniques to hide senders, recipients, and amounts at the transaction layer. Newer designs, like Secret Network and Aleo, extended privacy to smart contracts using enclaves or zero-knowledge (ZK) proofs. These projects proved that confidentiality can coexist with verifiability. Yet most of them prioritise a narrow slice of privacy - generally payments or specific forms of computation - and come with trade-offs around programmability, scalability, or developer experience.
Where most privacy chains fall short
Most privacy blockchains concentrate on one problem: preventing outsiders from reading transaction details. Monero uses ring signatures, stealth addresses, and RingCT to blur sender/receiver relationships and hide amounts. Zcash uses zk-SNARKs to shield transactions. These are strong protections for payments but don't extend easily to complex applications. You can send funds privately, but you can't run a private lending protocol, train a model on sensitive data, or manage personal records with nuanced access controls on-chain.
Projects that do aim for private computation run into other limits:
- Limited programmability. Monero and Zcash do not offer general-purpose smart contracts on par with Ethereum. They prioritize privacy for transfers, not platform-wide computation.
- High complexity and friction. ZK-centric platforms like Aleo enable private smart contracts, but they often require new languages (e.g., Leo), specialized circuits, and new mental models. That raises the learning curve and slows developer onboarding.
- Performance constraints. Zero-knowledge proofs can be computationally heavy. Provers shoulder work that can affect UX and throughput, while verifiers handle complex validation. Optimizations are improving, but costs and latency are still a factor.
- Ecosystem compatibility. Secret Network offers privacy-preserving smart contracts via trusted execution environments (TEEs), but contracts are based on CosmWasm rather than EVM. That can make migrations from Ethereum tooling and codebases slower.
In short, many privacy chains protect financial data well but don't fully solve for private smart contracts or confidential data use inside dApps and AI pipelines. Developers face trade-offs between privacy, performance, and the familiarity of the EVM stack. Users get private transactions but not necessarily private apps.
Oasis Network: privacy for data and compute
Oasis takes a broader view. It is a privacy-first Layer 1 designed not only to hide transactions, but to support private data use and confidential smart contracts. The core idea is modularity: the network separates the consensus layer from execution environments called ParaTimes. This split lets different ParaTimes specialize, some optimized for public EVM throughput, others for confidential computing, while sharing the same secure validator set for ordering and finality.
Key pieces:
- Consensus layer. A proof-of-stake layer that orders transactions and secures the network.
- ParaTimes. Independent execution environments that process transactions and state. They can be built for various needs, public or private, EVM or non-EVM, high-throughput or specialized workloads and run in parallel.
Within this architecture, two ParaTimes define Oasis's privacy posture:
- Sapphire (confidential EVM). Sapphire brings EVM compatibility together with on-chain privacy. Developers can write Solidity smart contracts and gain confidentiality for contract state and inputs. Payloads are encrypted end-to-end and only decrypted inside a secure execution environment, so nodes cannot read user data. For developers already in the Ethereum ecosystem, this means familiar tooling with built-in privacy features.
- Cipher (confidential compute). Cipher targets confidential smart contracts beyond the EVM context. It leverages trusted execution environments to process encrypted data and enforce privacy policies at runtime. This is useful for bespoke applications that need enclave-backed guarantees and custom logic outside a standard EVM.
By isolating compute into ParaTimes, Oasis keeps heavy or specialized workloads from clogging the base chain. Different ParaTimes can be upgraded independently, tune their execution models, or scale out with more nodes. The result is a platform that treats "privacy" as a first-class property of data and computation, not just payments.
How Oasis compares
Privacy scope. Most privacy coins focus on transactions: they hide amounts and addresses but stop at the wallet layer. Oasis extends privacy to data and program logic. Contracts on Sapphire can ingest encrypted inputs, manipulate confidential state, and produce selective outputs without exposing raw data to validators or other participants. Cipher further broadens this with enclave-based confidential compute for non-EVM contexts. This makes Oasis suitable for applications where the data itself, not just the balance transfer, is sensitive, such as medical records, identity attributes, user metrics, proprietary models, and more.
Architecture. Many chains are monolithic, where consensus and execution occur in a single engine. Oasis splits them. The consensus layer is general-purpose and lean, while ParaTimes execute transactions independently. That modular design lets confidential and non-confidential workloads coexist without interfering. A ParaTime under heavy load doesn't degrade the entire network, and developers can launch new ParaTimes tailored to specific privacy and performance trade-offs.
Compatibility. With Sapphire, Oasis offers an EVM that adds confidentiality without requiring developers to switch languages or rethink the entire stack. In contrast, some ZK-driven platforms ask developers to learn new DSLs or circuit design. Secret Network supports private contracts but uses CosmWasm; porting existing Solidity code is not drop-in. EVM compatibility on Oasis reduces friction: you can bring over code, libraries, and mental models, then opt into privacy features where needed.
Performance. Parallel execution across ParaTimes improves scalability. Each ParaTime processes its own transaction pool, so throughput grows with the number of active ParaTimes rather than forcing all activity through a single lane. Confidential ParaTimes can optimize for enclave throughput, while public ones optimize for raw speed. That separation also reduces cross-application interference and makes upgrades safer.
Use cases. Oasis's privacy model enables scenarios that go beyond private payments: tokenizing access to sensitive datasets, training AI models on encrypted inputs, private DeFi with hidden positions and selective disclosures, and digital identity systems where attributes are proved rather than revealed. These are difficult to build on chains that only hide transaction metadata or that lack confidential contract execution.
What this unlocks in practice
Consider healthcare. A hospital wants to run a predictive model on patient data to forecast readmission risk. On a typical chain, uploading that data is a non-starter: it would be visible to anyone. On a payment-focused privacy chain, the hospital could pay vendors privately but still couldn't compute on sensitive records safely. On Oasis, the data can be encrypted end-to-end and processed within a confidential ParaTime. The model runs inside a secure enclave; raw records never leave the protected environment, and only authorized outputs such as risk scores or aggregated statistics are revealed. Different hospitals can collaborate by contributing encrypted data to a shared model without giving each other direct access, enabling multi-institution learning with clear data boundaries.
Or take a DAO that manages a grants program. Members might need to review proposals containing trade secrets or personal information. With confidential smart contracts, proposals can be submitted and evaluated privately. Voting can remain verifiable while keeping voter identities or proposal contents protected, and the DAO can publish only the final funding decisions. The DAO uses on-chain governance without forcing sensitive materials into public view.
Private DeFi is another example. Traders may want to prevent frontrunning or keep their positions discreet. With Sapphire, order details and positions can remain confidential while settlement remains auditable. Selective disclosure - proving compliance or solvency without exposing the full portfolio - is also possible, aligning better with regulated use cases.
For digital identity, Oasis supports workflows where users prove attributes such as age, location within a jurisdiction, and accreditation status without revealing the underlying documents. Service providers can verify what they need to know and nothing more. This reduces data retention risks and aligns with privacy-by-default principles.
Data tokenization benefits from a similar approach. Instead of exposing raw files on-chain, a dataset can be represented by a token while access and computation are governed by a confidential contract. Consumers pay for queries or model evaluations rather than direct downloads. Owners keep control, usage is metered, and the chain provides an auditable trail without leaking the data itself.
These kinds of applications illustrate the difference between "hiding balances" and "using sensitive data safely." Payment privacy alone cannot support them; confidential computation and an encrypted state are the missing pieces.
Security in practice, challenges, and conclusion
A recent real-world test underscores how Oasis approaches security. Security researchers disclosed two physical attacks - Battering RAM and Wiretap that successfully compromised protections in Intel SGX (a newer "scalable" variant) and AMD SEV-SNP by exploiting deterministic encryption. The attacks made it possible to extract attestation keys and bypass security guarantees. Several TEE-based blockchain networks, including Phala, Secret, Crust, and IntegriTEE, were affected and issued emergency upgrades.
Oasis reported no impact or disruption. This outcome was not accidental; it traces back to explicit architectural choices:
- Separation of concerns. Oasis was designed so that not all nodes require constant access to all keys, even when running in TEEs. The key manager function is isolated, reducing blast radius even under enclave compromise.
- Different hardware profile. The Oasis key manager and the Sapphire runtime operate on Intel SGX v1, which uses a different memory encryption design and was not vulnerable to these specific attacks.
- On-chain gatekeeping. Joining the Oasis key manager committee requires governance approval. For Sapphire/Cipher committees, participants must already be network validators and hold a minimum stake (5 million ROSE). These requirements are enforced on-chain and cannot be bypassed - even with a full TEE compromise and possession of attestation keys.
- Ephemeral encryption. Transaction encryption uses ephemeral keys that rotate each epoch. Even if an attacker extracted keys from a compromised TEE, past transactions would remain protected because previous keys are securely erased.
- Adaptive policy. The network maintains a dynamic CPU blacklist so it can quickly respond to hardware-level disclosures. After the private disclosure of these attacks, Oasis also tightened governance requirements for committee membership.
The lesson is straightforward: on Oasis, TEE access alone is insufficient to subvert privacy or control critical components. The network layers on-chain controls, stake requirements, and key rotation on top of TEEs, so confidentiality does not hinge on a single mechanism. While other projects paused to patch and assess exposure, Oasis continued operating as designed; users and developers did not need to take any action. This validates the network's defence-in-depth approach and its emphasis on minimising trust in any one layer. For more on the security model, see the Oasis technology and documentation pages.
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Read more about this here - https://oasis.net/blog/oasis-tee-break-challenge
None of this removes the broader challenges. Oasis still has to grow developer adoption, improve integrations with other ecosystems, and keep educating teams about confidential workflows, testing, and observability. Interoperability that respects privacy constraints - bridges, indexers, analytics - must mature. And TEEs, like ZK systems, come with their own trust and maintenance assumptions. Hardware needs timely patches; attestation must be verified; and operators must adhere to best practices. The Oasis design addresses many of these points, but developers should still understand the underlying threat models.
Even with those caveats, the direction is clear. Oasis reframes what a privacy blockchain can be. Rather than stopping at hiding transaction details, it makes private data use and confidential smart contracts practical at the platform level. The modular ParaTime architecture keeps the base chain simple and lets specialized runtimes evolve on their own timelines. Sapphire delivers privacy to the EVM world without a wholesale rewrite, and Cipher offers a path for custom confidential compute.
The result is a network that shifts the conversation from secrecy to utility. Privacy isn't only about keeping information out of sight; it's about enabling people and organizations to use sensitive data with confidence, on-chain. Oasis isn't just keeping data secret - it's unlocking new possibilities for privacy-aware innovation.
References
https://bitcoin.org/bitcoin.pdf
https://ethereum.github.io/yellowpaper/paper.pdf
https://docs.scrt.network/
https://developer.aleo.org/
https://docs.oasis.io/
https://oasis.net/blog/oasis-tee-vulnerabilities