Private keys are generated in Phala's TEE enclave, encrypted via threshold encryption, and split into shares stored on Fairblock's FairyRing MPC network.
Smart contracts (e.g., CosmWasm) track TEE activity by periodic encrypted key submissions, acting as failure detectors.
If the TEE fails, contracts trigger Fairblock's MPC network to privately decrypt and reconstruct keys without exposing shares.
Recovery requires predefined criteria (e.g., TEE inactivity) and authorization via on-chain governance.
Recovered keys are securely migrated to new TEE instances, avoiding vendor lock-in.
Keys never leave TEEs in plaintext; MPC ensures no single entity accesses full keys.
Automated recovery prevents data loss from crashes/reboots, critical for mission-critical AI.
Eliminates centralized backups via smart contract-governed workflows and MPC.
TEE attestations and MPC transparency enable verification of key integrity.
Supports cross-hardware migration and integration with accountable MPC frameworks.
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