As we close the chapter on 2023, Phala Network reflects on a transformative year defined by innovation, strategic pivots, and meaningful progress. From the launch of groundbreaking technologies to deepening community engagement, this recap captures the milestones that have redefined Phala’s trajectory and set the stage for an even more impactful 2024.
Core Milestones of 2023
The past year marked a pivotal shift for Phala—from infrastructure development to product-driven utility. Key achievements include:
- Phat Contract Mainnet Launch (Q1): Empowering developers with off-chain computation, cross-chain connectivity, and scalable dApp capabilities.
- Phat Contract 2.0 (Q4): A major upgrade introducing JavaScript SDK support and seamless integration with any API, blockchain, or smart contract.
- SubBridge Sygma Integration (Q2): Enhanced cross-chain transfers with 80% lower fees and faster confirmation times.
- inDEX App Preview (Q4): Introduction of a cross-chain, intent-centric trading infrastructure.
- Phala Builders Program Launch (Q1): A developer-focused initiative offering funding, mentorship, and technical support.
These milestones reflect Phala’s evolution into a comprehensive Web3 compute platform.
👉 Discover how decentralized compute is shaping the future of Web3 development.
What Is Phala Network?
Decentralized Compute for Web3
Phala Network is a decentralized off-chain compute infrastructure built on Trusted Execution Environments (TEEs). With over 35,000 active workers, it delivers secure, scalable, and private computation for dApps across blockchains. By enabling verifiable off-chain processing while preserving decentralization, Phala redefines how Web3 applications handle complex workloads.
2023 Infrastructure Highlights
- Highest Monthly Transactions Among Polkadot Parachains: Demonstrates robust performance and reliability of Phala’s DePin infrastructure.
- Khala Network Signed Extrinsics: Surpassed 95 million transactions by year-end—nearly 100 million on-chain interactions.
- Total Transfers Across Phala & Khala: Over 77.5 million transfers processed in 2023.
These metrics underscore Phala’s role as a high-throughput, developer-ready ecosystem.
Phat Contract: Redefining Smart Contract Capabilities
Phat Contract is Phala’s flagship innovation—an off-chain program that extends smart contracts with real-world connectivity, cross-chain interoperability, and high-performance computation.
Key 2023 Milestones
- Mainnet Launch (Q1): Deployed on a decentralized cluster of 150 TEE workers governed by the Council. Now powers 157 live contracts, handling over 800,000 off-chain requests daily—rivaling Ethereum’s on-chain transaction volume.
- Permanent PoC6 Testnet (Q4): Offers a mainnet-like experience without financial risk. Over 1,500 Phat Contracts have been deployed so far.
- Phat Contract 2.0 (Q4): Introduced support for multiple programming languages and blockchains, along with reusable templates to accelerate development.
Developer-Centric Improvements
To lower adoption barriers, Phala enhanced developer experience through:
- EVM Compatibility: Secure configuration for connecting to any EVM-compatible chain.
- HardHat & Foundry Integration: Enables local testing without testnet deployment.
- MetaMask & Wallet Support: Full account abstraction allows Ethereum wallet usage.
- JavaScript/TypeScript SDKs: Broadened accessibility for mainstream Web3 developers.
Templates: Accelerating Real-World Adoption
Phala introduced modular templates to simplify common use cases:
- LensAPI Oracle: Connects smart contracts to the Lens Protocol social graph.
- The Graph Trust Score Template: Aggregates subgraph data into callable APIs.
- VRF Template: Enables verifiable random functions for gaming and NFTs.
These templates were developed in collaboration with leading projects like Lens Protocol, The Graph, Airstack, and Huddle01—then open-sourced for community reuse.
SubBridge & inDEX: Powering Cross-Chain Intelligence
Seamless Interoperability
SubBridge and inDEX together form Phala’s cross-chain solution stack:
- SubBridge: Connects EVM chains with Polkadot parachains via trustless asset transfers.
- inDEX: An intent-based routing layer that optimizes trades across liquidity pools using Phat Contract.
This integration reduces slippage, improves execution efficiency, and simplifies multi-chain DeFi interactions.
2023 Performance Metrics
Total $PHA Bridged: 241.6 million PHA transferred via SubBridge.
- Sygma Bridge (latest): 130.3 million PHA
- Legacy bridges: ~111.3 million PHA combined
- XCM Message Passing: Over 7,483 cross-chain messages processed between Khala and Phala.
The migration to Sygma reduced fees by over 80% and cut confirmation times in half—significantly improving user experience.
Trustless Execution Layer (Q4)
Built on Phat Contract, this new layer enables transparent, automated cross-chain actions. Upcoming features include one-click PHA transfers between Khala and Phala—fully trustless and governed by code.
PhalaWorld: A Pause with Purpose
PhalaWorld—a digital identity project combining AI and Soulbound NFTs—was temporarily paused to prioritize Phat Contract and inDEX development.
Key Developments Before Pause
- Marketplace launched with NFT trading, delegation display, and profile integration.
- Explored AI-powered NFTs to bring “digital souls” into the metaverse.
- Investigated integration paths with core Phala products.
While development is on hold, the team remains committed to its long-term vision and has offered buyback options to early supporters.
Community & Governance: Decentralized by Design
Phala operates as a DAO-driven ecosystem with active community participation in treasury management and technical upgrades.
On-Chain Engagement
- Average Active Addresses: 1,429 per day
- $PHA Holders (ERC20 + Native): 42,692 average in 2023
- Staking Preference: Khala remains the preferred chain for staking
SubBridge improvements accelerated migration from ERC20 to native chains.
Treasury & Funding
Phala’s on-chain treasury replaced traditional foundations:
- Total Awarded in 2023: 13.1 million $PHA
Top Allocation Areas:
- Ecosystem Builders: 63%
- Infrastructure Support: 11%
- Events & Marketing: ~18% combined
Funds were distributed via democratic proposals on Subsquare, ensuring transparency and community alignment.
Ambassador Program
The ePhala ambassador network grew to over 25 active contributors worldwide. These community champions drive content creation, education, and global outreach—strengthening Phala’s presence across social platforms.
👉 Learn how you can contribute to a decentralized compute revolution.
Compute Infrastructure: Scaling Secure Processing
The Role of Compute
Phala’s compute layer leverages TEEs to securely execute off-chain logic for dApps. Workers contribute hardware resources and earn $PHA rewards—maintaining a decentralized, high-performance network.
2023 Technical Advances
- Budget Balancer Launch: Enabled balanced tokenomics across Phala and Khala chains.
- DCAP Tech Nodes: Near completion; will allow high-quality workers to join the network and boost computational capacity.
- Vault Delegation Growth: 57.4% of all delegations now managed through Vault—indicating strong user trust despite a resolved technical issue in Q4.
Despite two halvings reducing network rewards to 56.25% of early-year levels, worker count, virtual CPUs, and staked PHA continued to rise—demonstrating resilient community commitment.
Events & Strategic Partnerships
Phala expanded its footprint across the Web3 ecosystem through targeted events and collaborations.
Global Reach
- Participated in 60+ events across North America, Europe, and Africa.
- Hosted or spoke at 7 major conferences, including Ethereum meetups and Polygon DevX Global Tour stops in 14 cities.
- Reached over 2,500 attendees globally.
Key Partnerships
- Polygon DevX Global Tour: Co-sponsored developer education events across five continents.
- Lens Protocol: Strategic integration with LensAPI Oracle now featured in Lens developer docs.
- The Graph & Airstack: Joint template development to streamline data access for smart contracts.
- Developer DAO: Co-hosted a two-phase hackathon generating 30+ submissions using Phat Contract.
These efforts solidified Phala’s position within top Web3 developer communities.
Rebranding & Strategic Shift
In 2023, Phala evolved from a privacy-focused project to a broader Web3 compute provider:
- Expanded reach beyond Polkadot/Kusama to EVM ecosystems.
- Refocused messaging around “off-chain compute” rather than just privacy.
- Enhanced website SEO and content strategy—publishing 56 blog posts and increasing Q4 active users by 100%.
This repositioning aligned with market demand for scalable, modular infrastructure solutions.
Reflections from Leadership
Hang Yin, CTO & Co-Founder
“2023 was our turning point. Before this year, Phala was powerful but inaccessible. With Phat Contract and inDEX, we now solve real problems for real users. We shifted focus from Polkadot-only to the entire Web3 ecosystem—and discovered that developers needed more than just compute: they needed simplicity. That’s why we added JavaScript support and launched templates. In 2024, our focus is clear: build great products, listen to feedback, and iterate relentlessly.”
Marvin Tong, CEO & Co-Founder
“We chose the harder path—not chasing hype, but building genuine utility. It hasn’t always been fast or easy, but I believe deeply in Phala’s mission: to make the internet more trustworthy through decentralized compute. Our impact may take time to be widely recognized, but every line of code brings us closer to a future where blockchains empower human and AI collaboration.”
Frequently Asked Questions
Q: What is Phat Contract?
A: Phat Contract is an off-chain program running on Phala Network that enhances smart contracts with cross-chain connectivity, internet access, and high-performance computation—all while maintaining trustlessness.
Q: How does Phala ensure security for off-chain computation?
A: Using Trusted Execution Environments (TEEs), Phala provides verifiable computation where results are cryptographically proven before being accepted on-chain.
Q: Can I use Phat Contract with Ethereum dApps?
A: Yes. Phat Contract supports EVM-compatible chains like Ethereum, Polygon, and Arbitrum through secure connectors and SDKs for HardHat and Foundry.
Q: What happened to PhalaWorld?
A: Development is temporarily paused to focus resources on Phat Contract and inDEX. However, its core concepts may be integrated into future projects.
Q: How can developers get funding for building on Phala?
A: Through the Phala Builders Program, which offers financial grants, technical mentorship, and ecosystem support for high-potential projects.
Q: Is Phala only for Polkadot developers?
A: No. While built on Substrate, Phala now fully supports EVM chains and targets the broader Web3 developer community.