TEN Protocol: A New Force on Ethereum Layer 2, Breaking Through Privacy and Scalability Bottlenecks

The development of blockchain technology has always attracted the attention of the financial industry. Recently, a group of core members from a well-known blockchain alliance launched an innovative project called TEN Protocol, which is an Ethereum Layer 2 Rollup protocol focused on complete data encryption. This protocol allows developers to flexibly choose which parts of the smart contract need to remain private or public.

Recently, the developers of TEN, Obscuro Labs, announced that they have completed a $9 million financing round, with participation from several well-known institutions. Currently, TEN is in the testnet phase and is expected to launch its mainnet in October this year, with its native token anticipated to be released in June.

Innovative Confidential Rollup Technology

The core of TEN lies in its innovative Confidential Rollup technology. This new type of Rollup combines the advantages of Optimistic Rollup and ZK Rollup, while also introducing confidential computing technology and economic incentive mechanisms. In this way, TEN not only retains the high performance and simple programming model of Optimistic Rollup but also achieves multiple goals such as data confidentiality, shortened withdrawal periods, and addressing the MEV problem.

Confidential Rollup utilizes Secure Enclaves and the POBI (Proof of Block Inclusion) protocol to function. Secure Enclaves provide a secure execution environment for sensitive data, while the POBI protocol ensures the fair selection of Rollup winners and reasonable distribution of rewards. This design can also pause withdrawals in extreme cases to protect network security.

Compared to traditional L2 solutions, TEN has significant advantages in multiple aspects:

1. Shortened the withdrawal time
2. Achieved complete decentralization, avoiding single points of failure.
3. Fully compatible with the Ethereum Virtual Machine (EVM), no need for developers to change their existing development methods.
4. Comprehensive encryption of the entire L2 provides strong technical support for privacy needs.

Improve user experience and expand diverse application scenarios

The technological innovations of TEN have brought significant improvements in user experience for the crypto world, while also providing possibilities for diverse application scenarios.

For ordinary users, TEN can effectively prevent the MEV (Maximum Extractable Value) problem, protecting users from unnecessary losses when using DeFi products. For enterprise users, TEN provides powerful transaction detail encryption capabilities, meeting the strict privacy requirements of enterprises. In addition, smart contracts can also keep secrets like human agents, bringing users a brand new experience.

In the DeFi space, TEN allows developers to choose between public or confidential content at a granular level. For example, everything in a lending protocol can be made public except for individual liquidation levels, with relevant information only being disclosed when liquidation levels are affected. This privacy protection mechanism offers the possibility of on-chain solutions for dark pools and over-the-counter trading found in traditional finance.

In the gaming field, the cryptographic features of TEN make it possible for games that rely on player behavior and location confidentiality, such as "fog of war" type games like Civilization and StarCraft. This not only expands the types of blockchain games but may also drive a shift in game business models from "play-to-earn" to "pay-to-play."

In terms of naming systems, TEN can overcome the privacy shortcomings of existing systems like ENS. By using confidential smart contracts, users can create aliases that cannot be linked to the underlying addresses, thus maintaining anonymity at the L1 level.

In addition, TEN's privacy protection technology can also be applied in various fields such as auctions, gambling, and business agreements, providing strong technical support for various scenarios that require privacy protection.

Experienced Team Background

The TEN team's focus on privacy and deep understanding of market demands largely stem from their experiences in a well-known blockchain alliance. The participants and investors in this alliance are mostly financial institutions managing vast amounts of wealth, which have mandatory requirements for data privacy.

More than half of the members of the TEN team come from this alliance and have held executive positions. These members are industry veterans with rich experience in fields such as blockchain and financial technology.

The team members include Gavin Thomas, who once led the development of a blockchain system, Tudor Malene, who previously served as Chief Engineer, Cais Manai, who was responsible for payment and digital asset projects, and James Carlyle, who also held the position of Chief Engineer, among others. These members have extensive work experience in globally renowned financial institutions and blockchain projects.

As Gavin Thomas, co-founder and CEO of Obscuro Labs, said: "Layer 2 networks are not just for scaling, but also to enhance the capabilities of Ethereum with new features. Through TEN, we will fulfill this promise. We have learned a lot from our experience in building cryptographic systems, whether in previous projects or on Ethereum."

The native token of TEN will be used to incentivize node operations, pay operational costs, and for governance voting within the protocol. In the future, it will also be used for donations, competitions, and incentives for ecosystem development.

With the continuous operation of the testnet and the mainnet set to launch in October, TEN is preparing to become a leading Layer 2 solution in the Web3 space.