Ondo Abandons Blockchain Plans for Offchain Execution Network
Ondo Finance has made a significant shift in its technology approach, abandoning its plans for a layer-1 blockchain in favor of an offchain execution network. The company's Ondo Network will handle trades away from public blockchains and is currently being used by Ondo Perps, its perpetual futures platform.
The system relies on 'enclaves,' also known as Trusted Execution Environments, which run the trading software inside a protected computing environment. A group of operators checks that the software has not been altered, each holding part of the digital key needed to authorize transfers.
Ondo said transfers are ultimately recorded on public blockchains, but it did not identify the operators or say how many are involved. The company described Ondo Network as a continuation of its previous blockchain plans, stating 'it isn't a blockchain today; it doesn't need to be.'