Blockchain technology is widely heralded as a transformative force for enterprise – from streamlining supply chains and enhancing financial processes to securing digital identities. It promises to radically improve how organizations manage data, trust, and transactions. Yet, many enterprises remain cautious about fully embracing public blockchain solutions because of concerns around security, scalability, privacy, control and regulatory compliance.
A compelling answer lies in a hybrid blockchain model – one that combines the best aspects of private (permissioned) and public (permissionless) networks. By integrating the control and confidentiality of private systems with the transparency and decentralization of public chains, enterprises can safeguard sensitive information while benefiting from global trust and interoperability.
Coupled with advanced solutions like the GODS Network, this approach not only addresses critical enterprise challenges but also drives broader public chain adoption.
It is important for us to outline what private and public blockchains are. This sets the groundwork for understanding why a hybrid model is best suited to catalyse enterprise adoption for the public blockchain network.
Characteristics:
Drawbacks:
Examples in practice:
Characteristics:
Drawbacks:
Examples in practice:
Think of a traditional bank. You access your account via a public app over a public network, but behind the scenes, the bank’s internal systems are protected by a secure intranet. Sensitive data like HR records or proprietary processes remain hidden, while only essential transaction data (like your account balance) is visible externally.
In web3, a private blockchain functions as this intranet, allowing sensitive computations to be kept confidential. Meanwhile, key outcomes—such as transaction confirmations—can be recorded on a public chain, ensuring transparency and immutability.
Large organizations often balk at placing any data on a fully public ledger—even if encrypted—due to regulatory constraints, internal policies, control, and privacy concerns. By offering a private network that seamlessly interfaces with a public chain, enterprises can:
It might seem counterintuitive, but as enterprises deploy private blockchains to manage sensitive data, they naturally generate key events—such as transaction finalizations—that can be recorded on public chains for greater transparency.
These on-chain records not only verify the private process but also bring real-world validation and transaction volume to the public ecosystem. Over time, this interplay boosts the credibility and adoption of public blockchains while enterprises get comfortable on the private side.
Multi-Party Computation (MPC) is a critical technology that enhances security by allowing multiple parties to compute functions over their data without revealing the inputs. In a hybrid model:
Decentralized MPC:
Centralized MPC:
Hybrid MPC Approaches:
GODS Network further the migration from enterprise blockchains to any public blockchain by not locking migration to a single public blockchain. It’s designed as a cross-chain data subscription layer that seamlessly connects disparate blockchains—whether private or public—through a simple, API-like interface. Here’s what makes GODS Network unique:
A hybrid blockchain model is the most practical solution for onboarding web2 enterprises into the web3 world. By keeping sensitive data and internal processes on a private network while using public chains for key transactions, enterprises can:
As enterprises increasingly migrate to hybrid frameworks, they generate a wealth of validated public transactions that enhance the overall credibility and interoperability of blockchain networks. Platforms like GODS Network embody this vision by offering a secure, scalable, and developer-friendly bridge that not only protects sensitive data but also catalyzes broader public chain adoption.
The journey toward enterprise blockchain adoption has been deliberate and measured, with enterprises seeking solutions that balance privacy, control, and regulatory compliance against transparency and decentralization. Hybrid blockchain models effectively bridge this gap by combining the best elements of private and public blockchains, delivering secure, scalable solutions that enterprises can comfortably adopt.
The banking analogy illustrates how internal systems (the “intranet”) can coexist with public interfaces, enabling both confidentiality and auditability. GODS Network enhances this hybrid approach by seamlessly connecting private and public infrastructures, streamlining cross-chain interactions and simplifying overall user experience. It is an essential tool for facilitating smooth integration and interaction.
As enterprises build confidence in this hybrid model, they will drive increased public chain activity, ultimately creating a robust, interconnected web3 ecosystem.
Dive deeper into the other relevant topics here:
Stay updated: Website • X • Discord • Telegram • LinkedIn • Facebook • Instagram • GitLab • Medium • YouTube
AI and blockchain – two of the most transformative technologies of our time – are converging to reshape how we interact with digital systems. At the forefront of this are AI agents: autonomous entities capable of performing actions in both Web2 and Web3 ecosystems without human intervention. Together, they can rewrite the rules of what’s possible.
Imagine this: An AI agent autonomously moderating content on decentralized social platforms, or collaborating with researchers globally, securely training on anonymized medical data to uncover patterns and suggest treatments for rare diseases – all while keeping patient privacy intact. Or an agent in DeFi, working tirelessly to rebalance portfolios and optimize liquidity based on real-time market trends. These are some of the realities that AI agents are beginning to make possible.
But these breakthroughs don’t come without challenges. Privacy concerns, computational limitations, and trust issues loom large before greater adoption of AI agents. Partisia Blockchain is tackling these obstacles head-on, using its cutting-edge Secure Multi-Party Computation (MPC) technology to pave the way for secure, scalable, and private AI agents.
AI agents are uniquely suited to Web3, where they can act autonomously within decentralized, trustless ecosystems to deliver transformative benefits. Here are some of them:
AI agents can securely train on encrypted datasets without revealing sensitive information. This capability supports applications like:
AI agents can monitor market trends, execute trades, and manage liquidity pools—operating 24/7 to maximize efficiency without human oversight.
AI agents autonomously moderate content and curate user experiences in decentralized communities. For example, an AI agent identifies and flags harmful content for community review, ensuring fair moderation without centralized oversight.
AI agents autonomously moderate content and curate user experiences on decentralized social platforms. For example, an AI agent identifies and flags harmful content for community review, ensuring fair moderation without centralized oversight.
DAO participation is often a challenge as significant amounts of users fail to participate in the governance of projects. AI agents can act as intelligent advisors or representatives in DAOs, simplifying governance. For example, an agent summarizes DAO proposals and recommends votes based on a member’s goals and historical decisions.
In Web3 gaming, AI agents enhance user experiences by acting as intelligent NPCs or personalized assistants, tailoring gameplay to individual preferences.
These opportunities highlight the transformative potential of AI agents. But their success depends on solving critical challenges:
To function effectively, AI agents require access to large datasets, which raises privacy concerns around sensitive information like financial records or medical histories. Robust privacy-enhancing technologies are essential.
Many current AI systems rely on centralized infrastructures, introducing single points of failure and security vulnerabilities.
AI computations are resource-intensive, and traditional blockchain networks often struggle to handle these workloads efficiently, resulting in high costs and congestion.
Users need confidence that AI agents are operating fairly and securely. Transparency is key, but it must coexist with strong privacy protections.
Partisia Blockchain is pioneering solutions that address these challenges, leveraging its privacy-first infrastructure and cutting-edge MPC technology to enable AI agents to thrive in Web3 ecosystems:
Partisia’s MPC technology allows AI agents to train on encrypted datasets without ever exposing sensitive data.
Partisia Blockchain’s decentralized node network eliminates reliance on centralized servers, ensuring AI agents operate autonomously within trustless environments.
Advanced sharding and real-time finalization enable Partisia Blockchain to handle even the most resource-intensive AI computations.
Partisia’s cryptographic protocols ensure that AI agents operate without bias while maintaining data confidentiality, building trust among users and developers.
Partisia Blockchain offers a uniquely robust foundation for AI agents in Web3:
AI agents are poised to redefine decentralized systems, bringing intelligence, automation, and adaptability to Web3. Their success, however, depends on the right infrastructure – one that prioritizes privacy, scalability, and trust.
With its innovative Secure MPC technology, Partisia Blockchain is building this foundation. Together, we can realize the promise of AI agents: smarter systems that respect privacy, foster collaboration, and empower innovation.
Be part of this journey – join our community on Telegram and help shape the future of AI agents in web3.
Stay updated: Website • X • Discord • Telegram • LinkedIn • Facebook • Instagram • GitLab • Medium • YouTube
Abstract: This blog presents a fully documented framework for DeFi solutions, such as “Automated Market Makers” (AMMs), on a highly scalable blockchain like the Partisia Blockchain. The framework guarantees fixed prices across independent liquidity pools and effectively addresses front-running with MPC.
Financial inclusion is at the heart of the original narrative that formed the beginning of blockchain and later Decentralized Finance (DeFi). The global financial crisis in and around 2008 revealed several weaknesses in traditional financial systems. The global financial crisis was part of the motivation behind the Bitcoin protocol creation. Although the challenges behind the global financial crisis were more significant than what immutable money could fix, it initiated and accelerated innovations that improved traditional finance and pushed to new horizons.
The very same crisis inspired the origin of Partisia. However, innovation was a different type of decentralized cryptography that was also designed to remove intermediates, which manage private information, such as sealed bids in financial markets. The initial work by Partisia was the world’s first Decentralized Exchange (DEX) with sealed bidding which went into commercial use in 2008.
The Partisia Blockchain established in 2020, is a combination and extension of these two narratives and provides a powerful encrypted computation network and tool set to continue fixing weaknesses in both Decentralized Finance (DeFi) and Centralized Finance (CeFi), as exemplified by the solution described in this blog.
DeFi is an important part of Web 3.0 and provides solutions that may most likely drive and enhance financial inclusion. This blog focuses on so-called Automated Market Makers (AMM) as a simple and decentralized way to exchange crypto assets. The core innovation behind AMMs is to conduct trading without direct interaction and matching of buyers or sellers of crypto assets. This significantly reduces the complexity of the market solution. Since the entire AMM solution is a set of smart contracts, the security model was also significantly improved as a genuinely decentralized trading platform.
Ethereum has been the most used blockchain platform for AMM solutions. And token bridges–as well as second layer blockchains–have broadened the uptake to other blockchain networks. Recent developments take this development one step further and run AMMs across independent blockchain platforms, i.e. cross-chain DeFi. This poses a set of new obstacles, such as the challenge of representing states (data and tokens) across independent blockchain platforms.
Another challenge preventing a simple copy-paste of the Ethereum model to sharded or cross-chain blockchains is the economics instilled into the Ethereum execution model. This is primarily the arbitrage opportunity coming from the “all or nothing” execution (atomic execution), as well as the sequential use of the entire AMM solution (one user at a time). With Uniswap (one of the most applied AMMs) for example, a user can swap asset A to asset B, and then swap asset B to asset C, and then potentially swap asset C back to asset A without other users interfering. Sometimes this set of swaps returns profit to the user. This type of arbitrage essentially for free since the public ledger allows anyone to constantly monitor the AMM solution. This is, however, only feasible due to the atomic execution and sequential use of the AMM solution, and cannot be transferred to a sharded blockchain or to cross-chain AMM solutions without additional economic mechanisms.
The Partisia Blockchain team has jointly worked with researchers specializing in AMMs and economic mechanism design. And together developed a mechanism which guarantees fixed prices as well as the “multi-swap” arbitrage opportunities described above. The key component is a “lock-swap” mechanism that guarantees a user fixed prices for a given swap. The mechanism only locks the actual requested trade and allows other users to use all liquidity pools without the non-scalable sequential use of the entire AMM solution as we know it from Ethereum.
The mechanism essentially works as follows: every pool keeps track of two pools, the “actual liquidity pool”, and a “virtual liquidity pool”. The actual liquidity pool keeps track of all the instant swaps, i.e. those that are actually executed. The virtual pool keeps track of the lock swaps, since such swaps might be canceled later on. Hence, by submitting a lock-swap the user secures fixed prices by the lock-swap function, which only affects the virtual liquidity pool. For any user after the lock-swap, the protocol ensures the smallest amount of assets across the actual liquidity pool and the virtual liquidity pool. Hereby, the mechanism favors first movers that fixed prices using the lock-swap function. Unlike the Ethereum sequential use, the lock-swap minimizes the impact on the entire AMM solution so assets can be exchanged in parallel and across independent blockchains and shards. And also in liquidity pools with one or more lock-swaps. Read more about the mechanism here.
In other words, the mechanism ensures the liquidity managed by the AMM solution is put to maximal use in two ways:
The mechanism is designed to fully utilize sharding where transactions are automatically off-loaded across different shards in an ideal way that favors unlimited parallelization, i.e. asynchronous and concurrent execution. This type of sharding is native to the Partisia Blockchain and will be instrumental in ensuring unlimited parallelization needed to match the demand as decentralization flourish. Read more about the sharding model here.
Finally, note that since cross-chain AMMs are similar in nature, the proposed mechanism also supports use of liquidity pools operated on completely separated blockchains.
Another challenge and obstacle for a broad uptake of AMM solutions within and beyond the blockchain ecosystem is front-running. On Ethereum and similar blockchain platforms, the AMM transactions are transparent to all, but added to the blockchain consensus model by one or more actors, such as “mempool operators” or “block producers”. The problem is that these actors can delay and place their own AMM valuable transaction, i.e. front-running.
Front-running is a critical problem that needs to be solved for the sake of the users, but also a problem that is critical for the DeFi narrative as a “single point of trust” failure. Fortunately, the advanced encrypted computation that is built-in to Partisia Blockchain provides a decentralized solution, which points back to the original work by Partisia and the first commercial use of MultiParty Computation (MPC) for safeguarding sealed bids.
However, as a big contrast to the first commercial use of MPC, Partisia Blockchain provides a simple interface that allows any developers (without cryptographic skills) to script the required computation and leave it to the network to compile and run the encrypted computations. The concrete solution is an encrypted computation which keeps the actual swap secret until it is fully executed. Hereby, the arbitrage opportunity from frontrunning is effectively addressed.
Ensuring that DeFi solutions comply with the jurisdictional regulation is, of course, an obligation for any DeFi service provider. It may also soon be a competitive advantage and a requirement for expanding the use of DeFi solutions outside of blockchain.
While financial fraud regulations, such as KYC and AML, are obvious, matters that are addressed in this blog may become essential regulatory requirements as well:
Although future regulatory requirements are unknown, building a blockchain network that is sufficiently flexible to quickly adjust to regulatory requirements may be crucial. For DeFi service providers that aim at offering DeFi solutions outside of the blockchain ecosystem and in direct competition with traditional financial solutions, regulatory requirements will be instrumental.
For DeFi teams considering to build the next generation of scalable DeFi solutions on Partisia Blockchain, please find links to the scientific work, description, and template smart contracts below: