In 2025, the Sui blockchain solidified its position as a leader in Web3 innovation with the launch of the Nautilus protocol on its Mainnet. Nautilus introduces a transformative approach to off-chain computation with on-chain verification, enabling complex DeFi and AI applications to operate securely, privately, and efficiently.
By leveraging Trusted Execution Environments (TEEs), starting with AWS Nitro Enclaves, Nautilus bridges the gap between high-performance off-chain processing and the trust guarantees of on-chain systems, unlocking new possibilities for decentralized applications (dApps).
What is the Nautilus Protocol?
The Nautilus protocol, launched on Sui’s Mainnet in June 2025, allows developers to execute sensitive or resource-intensive computations off-chain within secure, tamper-proof TEEs. These computations generate cryptographic attestations, which are verified on-chain by Sui’s Move smart contracts, ensuring integrity without compromising decentralization. This hybrid model addresses the limitations of on-chain computation, high costs, slow speeds, and privacy concerns, making it ideal for data-driven applications.
How Nautilus Protocol Enhances DeFi and AI
Nautilus empowers DeFi and AI applications by combining off-chain efficiency with on-chain trust. Key features include:
- Privacy: Sensitive data, like user inputs or proprietary models, is processed in isolated TEEs, shielding it from external access.
- Scalability: Off-chain computation reduces the load on Sui’s main ledger, enabling complex logic without clogging the network.
- Verifiability: Cryptographic proofs ensure computations are executed as intended, fostering trust in decentralized systems.
- Cost Efficiency: By minimizing on-chain operations, Nautilus lowers gas fees, making advanced dApps economically viable.
Real-World Applications
Nautilus protocol supports a range of innovative use cases:
DeFi: Tamper-Proof Oracles and Trading Engines
Nautilus enables secure oracles for real-world data, such as asset prices or weather conditions, critical for DeFi protocols like Automated Market Makers (AMMs). For example, Bluefin, a decentralized perpetuals trading platform, uses Nautilus to run order matching off-chain in a TEE, with results verified on-chain, achieving high-speed trading with trust guarantees.
AI: Financial Prediction Models
Nautilus allows AI models to run privately off-chain, processing large datasets for tasks like market predictions. A financial prediction model could analyze historical data in a TEE, generating forecasts for DeFi yield farming strategies, with outputs verified on-chain to ensure fairness and accuracy.
Legal Contracts
Nautilus supports private execution of legal contract logic, such as dispute resolution or escrow agreements. For instance, a smart contract could verify a TEE’s attestation to confirm that a confidential arbitration process followed agreed-upon rules, releasing funds only upon valid outcomes.
Why Nautilus Matters in 2025
Since its Testnet debut in April 2025 and Mainnet launch, Nautilus protocol has attracted partners like Bluefin, TensorBlock, and RegularTech, showcasing its versatility across DeFi, AI, and legal applications. As Web3 demands grow, Nautilus positions Sui as a hub for smarter DeFi and AI, delivering privacy, trust, and performance at scale.
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