Why TEE-Based Smart Contracts Still Aren't Fully Secure | HackerNoon
Briefly

Key management in TEE-assisted systems involves significant complexities due to the balance between security and availability. Storing keys in a single TEE enhances security but introduces a single point of failure. Conversely, sharing private keys across multiple TEEs allows for greater availability but increases the risk of key exfiltration. Additionally, confidential smart contracts executed within TEEs lack transparency compared to traditional blockchain systems, making it impossible for users or nodes to verify the integrity of contract execution or the security status of the TEEs involved.
The private keys in TEE-assisted systems are extremely crucial but hard to manage. Placing application keys in a single TEE enhances security but creates a single point of failure. Meanwhile, sharing keys among multiple TEEs increases availability but raises the risk of key exfiltration. Key sharing technologies remain complex and inadequate in addressing these challenges, raising concerns about potential attacks that could leverage compromised attestation keys to present false execution confirmations.
Confidential smart contracts relying on TEE technology face significant transparency issues. Unlike traditional blockchain systems, where outputs can be publicly verified, TEE outputs are encrypted. As a result, the attestation service can confirm that outputs originate from a TEE but cannot provide assurances about the integrity of contract execution or the security of the TEEs themselves.
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