TEN Protocol is a decentralized Ethereum Layer-2 Rollup protocol designed to add encryption, achieve scalability, and prevent Maximal Extractable Value (MEV) in blockchain transactions. It enables developers to build encrypted decentralized applications while maintaining compatibility with the Ethereum ecosystem. ^{[1] [2]}

Overview

TEN Protocol introduces a new type of rollup technology called "Confidential rollups" that combines encryption with the scalability benefits of Layer-2 solutions. The protocol leverages Secure Enclaves, particularly Intel's Software Guard Extensions (SGX), to provide robust confidentiality guarantees while ensuring certainty over the code execution. This approach allows TEN to offer smart contracts, decentralization, scalability, and encryption in ways that other technologies cannot currently achieve ^[1].

The protocol aims to improve the blockchain experience for three primary user groups: retail users who want protection from front-running and MEV attacks, corporate users who require encryption of sensitive trading details, and developers building applications that need to maintain secrets within smart contracts. By encrypting transactions and providing confidential computing capabilities, TEN creates opportunities for use cases that are impossible on transparent blockchains.

Unlike other Layer-2 solutions, TEN is designed to be trustless and decentralized from launch, with no reliance on centralized sequencers or aggregators. It synchronizes the publishing of rollups to the cadence of Layer-1 blocks to guarantee quick finality and solves the long withdrawal problem seen in optimistic rollups ^[1].

Technology

Confidential Rollups

TEN introduces Confidential rollups, which leverage Secure Enclaves and the Proof of Block Inclusion (POBI) protocol. These rollups move computation off the Layer-1 blockchain while maintaining security through encryption. Key advantages include:

• Shorter withdrawal delays compared to optimistic rollups
• Complete decentralization from day one
• Full Ethereum Virtual Machine (EVM) compatibility
• Total encryption over the entire Layer-2 network ^[1]

Secure Enclaves

Secure Enclaves are secure areas within a central processor that guarantee code and data loaded inside are protected with respect to confidentiality and integrity. TEN initially focuses on Intel's SGX technology, which provides:

• Protection of cryptographic key material
• Prevention of transaction spying, even by the enclave operator
• Ability to search encrypted data
• Secure code execution with complete privacy
• Attestation to verify code integrity ^[1]

The team plans to expand to other Secure Enclave offerings and homomorphic encryption in the future to reduce dependency on Intel.

Proof of Block Inclusion (POBI)

The POBI protocol drives consensus for confidential rollups and is responsible for:

• Ensuring fair selection of rollup round winners
• Distributing rewards fairly to aggregators and verifiers
• Managing edge cases where network compromise might occur, ensuring only temporary pauses to withdrawals until resolution ^[1]

Data Revelation

TEN implements a flexible policy for delayed transaction revelation, recognizing that the value of confidentiality decreases over time. Transactions are encrypted with different keys representing discrete revelation periods, which can be revealed independently. Initially, TEN has a maximum one-year reveal period for all transactions, though this may be adjusted through community governance in the future ^[1].

Use Cases

Programmable Encryption for DeFi

TEN allows developers to choose what information remains hidden and what becomes public at a granular level. For example, in lending protocols, liquidation levels can remain encrypted until triggered, preventing liquidation hunting by whales who might otherwise push prices down to force liquidations ^[1].

Encrypted Name Service

Similar to Ethereum Name Service (ENS), but with added privacy. When using an encrypted name service on TEN, aliases cannot be linked to underlying addresses, allowing users to maintain anonymity while still using human-readable names ^[1].

Sealed Bid Auctions

TEN enables truly sealed bid auctions where bids remain hidden until the auction concludes. This prevents auctioneers from colluding with bidders and ensures fair price discovery. The protocol's blog references how the ConstutionDAO experiment could have had a different outcome with encryption technology ^[1].

Dark Pools and OTC Trading

TEN supports dark pool trading where exposure is hidden until after execution and reporting. This allows investors to trade without revealing their intentions during the search for counterparties. Similarly, over-the-counter (OTC) trading for bespoke financial products can be conducted with guaranteed confidentiality ^[1].

Commercial Agreements

Service Level Agreements (SLAs) and other commercial contracts can be deployed on TEN with complete encryption, such that only participants know the contract exists. This enables automated payouts based on independently verified data from oracles while maintaining business confidentiality ^[1].

Gaming

Games that rely on hidden information, such as "fog of war" mechanics in strategy games, become possible on TEN. The protocol enables a shift from "Play to Earn" to "Pay to Play" models as AAA games can incorporate cryptoassets with hidden elements that even game developers cannot access ^[1].

Team

TEN's core team includes members who previously built Corda, which is described as "the world's most successful enterprise blockchain platform." Corda is used by leading banks, financial institutions, insurance companies, and telecommunications firms ^[1].

The team brings over five years of experience working with SGX technology in partnership with Intel, providing them with specialized knowledge in implementing secure enclave solutions for blockchain applications ^[1].

Tokenomics

The TEN network requires participation from various actors who incur costs in performing their roles and need compensation. The system's security partially depends on economically punishing malicious actors through a traditional staking model using a digital asset. While the litepaper mentions a separate tokenomics paper for more detailed information, it indicates that the protocol has a utility token to power the network and provide decentralized governance ^[1].

Ecosystem

TEN provides an Ethereum experience for both application developers and end-users. Developers can port existing Ethereum applications with minimal changes and build new applications using any Ethereum-supported programming languages and developer tools. End-users can continue using MetaMask or their preferred Ethereum wallets without changing their experience ^[1].

The protocol includes a fully decentralized bridge between Ethereum and TEN, backed by Ethereum's security. This allows users to move assets between the two networks while maintaining the privacy benefits of the TEN protocol ^[1]. ^{[2] [3] [4] [5]}.