How the Compute Contract Works
This document explains the full lifecycle of a Compute Contract, from agreement creation to result retrieval and fund settlement.
Overview
A Compute Contract combines:
On-chain economic agreement
Guardian-based threshold decryption
Off-chain computation
Verifiable result publication
Automatic fund settlement
It ensures that computation happens only after economic terms are agreed upon, and payment is released only after execution is completed.
Architecture Components
User Initiates the request through a dApp.
dApp Creates the agreement and a compute request transaction.
RPC Node Gateway between the dApp and the Palliora network.
Guardian Nodes Selected nodes that:
Agree to the computation terms
Perform threshold decryption
Coordinate secure execution
Guardian Service Service layer responsible for:
Threshold decryption
Forwarding decrypted payloads to the Compute Node
Compute Node Executes the requested computation (AI model, logic, etc.).
Data Availability Layer Stores published results with recoverability and proof guarantees.
Consensus Layer Finalizes transactions, locks funds, and triggers settlement.
Step-by-Step Flow
1. Agreement Creation
The flow begins when the User interacts with the dApp.
The dApp creates a Compute Contract Agreement Request, which defines:
Compute the cost the user is willing to pay
Threshold decryption fees
List of selected Guardians
Execution parameters
This formalizes the economic and trust assumptions before any computation begins.
2. Agreement Submission
The dApp sends the Agreement Request to an RPC Node.
The transaction:
Enters the transaction mempool
Funds are locked
Is broadcast to the selected Guardians
Each Guardian reviews the request and submits an Agreement confirmation. When all required Guardians agree:
The agreement is included in a block
A unique Agreement ID is generated
At this stage, the Compute Contract is officially established on-chain.
3. Compute Request Submission
After the Agreement is finalized:
The dApp submits the Compute Request
The request references the Agreement ID
The compute payload is submitted encrypted
The encryption ensures that no single Guardian can access the payload alone, and decryption requires the agreed threshold
4. Threshold Decryption
Once the Compute Request is confirmed on-chain:
The Guardian Service initiates threshold decryption
A minimum number of Guardians must participate
The payload is decrypted collectively
This guarantees privacy, shared trust, and resistance to single-node compromise
5. Execution by Compute Node
After decryption:
The request is forwarded to the Compute Node( Trusted or Confidential)
The computation is executed
The Compute Node only processes the decrypted payload, and does not control private keys, nor can it alter economic terms
6. Result Publication
When computation completes:
The result is published to the Data Availability Layer
The Data Availability Layer ensures Proof of existence, Data recoverability and Verifiability
7. Consensus & Fund Release
Once the result is published:
The Consensus Layer finalizes it
Settlement logic is triggered
Funds are released according to the Agreement
Payments are distributed to the Compute provider and Guardians who participated in threshold decryption
8. Result Retrieval
While execution happens off-chain:
The dApp polls for the result
When available, it retrieves it from the Data Availability Layer
The result is presented to the User
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