How DeCC unlocks the power of Web3

We often talk about the “decentralized” value provided by blockchain technology. This term often represents robustness, resistance to censorship, and a “bottom-up” support system that helps make world-changing apps safe and democratized.

Decentralization is being observed in several major fields including Finance (DeFi), Physical Infrastructure (DePIN), Social Networks (DeSo), Scientific Research (DeSci), Artificial Intelligence and more. In reality, these applications are limited by a critical issue: data privacy.

Because most traditional blockchains are completely transparent, user data is immediately public and can be used for analysis and research. This makes Web3 much less convenient for institutional players and, in some cases, virtually impossible to use. How can we protect sensitive raw data while these and hundreds of other applications still reap the benefits of decentralization?

The answer is. Decentralized secret calculationOtherwise known as DeCC.

Cryptocurrency has been around for years, but it's often combined with privacy chains, a misunderstanding that hides the true power of this technology. DeCC is a separate category that can ensure compliance and enterprise use cases.

DeCC complements blockchain.

Confidential computing is the ability to protect information during processing. And it was a critical offering in the Web2 world. Companies love it Microsoft, google, IBM, NVIDIAAnd others already provide powerful cryptographic computing solutions.

However, this industry mega-trend is now being understood in the Web3 world. Buzzword-heavy initiatives like “decentralized AI” and DePIN have exposed the limitations of fully transparent blockchains, and developers are turning to decentralized cryptography as a solution.

DCC offers protected computing, which allows arbitrary manipulation of data without revealing it to the world. It is important to distinguish cryptographic computing blockchains from projects that focus solely on transaction privacy, such as Monero or ZCash.

We are seeing this technology enable hundreds of new use cases on the Web3 infrastructure. To name a few:

Secret business strategies for DeFi
AI model training on confidential information
AI models with secret parameters
Sealed auctions for the DeFi, DeSci and NFT worlds
Enabling real ownership of content on Web3 NFTs with protected data
On-chain secret voting (eg for DAOs)
A decentralized on-chain identity that does not reveal information to everyone
Several game usage issues

Cryptocurrency also enables opt-in compliance. With good access control, users can choose who can access their data and when.

The technology behind DCC

DeCC can be implemented using several leading technologies that enable blockchains. These include zero-knowledge proofs (ZKP), multiparty computation (MPC), full-homomorphic encryption (FHA) and hardware-based Trusted Execution Environments (TEE). Along with differences in security, speed, and flexibility, all of these highlight smart contracts that perform decentralized, confidential calculations and protect user data.

As a starting point, here is a list of unfinished projects using these technologies:

TEs are used by Oasis, Fala, and Marlin to power fast, secure, hardware-based computations.
MPC is used by Fairblock and Partisia to ensure that no party has complete access to confidential information.
ZKPs use the Aztec, Aleo, Penumbra and Manta networks to allow queries to be answered anonymously and
FHE is used by Phoenix and Inco to provide completely secure computing on encrypted data

Each technology has unique benefits and advantages, and all will play an important role in the future of DeCC. We see more projects combining several different DeCC technologies for better results.

The future of DeCC

DeCC is the missing piece of the Web3 stack that enables new, powerful decentralized applications – spurring innovation and paving the way for wider adoption. It's surprising how many blockchain use cases can benefit greatly from being able to control access to data, ensure integrity, and encrypt sensitive information in a decentralized manner.

DeCC is the key building block of the decentralized web, taking its place alongside DeFi, DePin, DeSo, DeSci and Gamefi. It enriches existing use cases, enables many new ones, and serves as a key driver for wider adoption.

Given the industry's focus on blockchain modularity, DCC is a perfect fit. It provides the encryption enforcement layer as the fifth layer, with execution, communication, data availability, and buffering being the other four.

Rather than being a new idea, a standard practice for performing secret computations and protecting data stored on-chain will one day exist in Web3. Only then will we realize the full promise of decentralized networks – only then will we be able to unlock blockchain for individuals and institutions everywhere.