3 min read

Ledger x Luganodes x Zama: Powering Confidential Compute

Securing Encrypted Smart Contracts

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Published on

6 Jan, 2026

Introduction

Privacy, verifiability, and decentralization are becoming foundational requirements for the next generation of blockchain applications. Zama’s Confidential Blockchain Protocol introduces a new model for encrypted smart contracts powered by Fully Homomorphic Encryption (FHE), enabling developers to build private, composable, and publicly auditable applications across existing ecosystems.

As the protocol progresses through its stages of development, trusted entities such as Ledger are coming on board for essential roles like key management, which are critical to the security of Zama’s network.

For its MPC Operator role, Ledger has partnered with Luganodes as a trusted infrastructure provider.

Zama’s Confidential Blockchain Protocol

Zama is building a confidential compute layer designed to work across existing blockchains. Rather than introducing a new L1 or L2, the protocol integrates encrypted execution and programmable privacy directly into established environments such as Ethereum, with broader ecosystem support planned.

Key design properties include:

  • Encrypted state and inputs using FHE

  • Threshold decryption via MPC, enabling secure and decentralized key handling

  • Composable confidential contracts, interoperable with public smart contracts

  • Full verifiability, preserving auditability while keeping data private

By combining FHE, MPC, and ZK verification, Zama aims to deliver confidentiality without creating new trust assumptions.

Role of MPC Operators

The MPC network is responsible for protecting and managing the private FHE key that enables encrypted execution. This key is never stored or revealed in full; instead, it is distributed among independent MPC operators that collectively perform threshold decryption when permitted by contract-level rules.

Operators enable:

  • Secure distributed key generation

  • Threshold decryption for authorized operations

  • High availability for confidential compute

  • A decentralized foundation for encrypted applications

Ledger’s participation, operated by Luganodes, contributes to the resilience of this key management layer.

Luganodes x Ledger x Zama

Ledger is expanding its involvement in decentralized cryptographic infrastructure and has partnered with Luganodes as its infrastructure provider. Through this partnership, the MPC node setup benefits from Luganodes’ operational expertise, reliability, and infrastructure optimized for distributed cryptographic workloads.

As an MPC Operator, “Ledger by Luganodes” plays a crucial role in securing the private FHE key that powers the Zama Protocol.

"With over a decade of proven, uncompromising security across retail and institutional products, networks like Zama, which recognize the value and importance of security, know that there is no true security without Ledger. This collaboration between Ledger, Zama, and Luganodes will significantly bolster the security of Zama’s compute layer, and we’re excited to see it come to life."

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Sebastien Badault

EVP of Enterprise at Ledger

Conclusion

Confidential compute is poised to become a core pillar of blockchain adoption, and Zama’s protocol offers a path to encrypted, verifiable, and permissionless applications. With trusted names such as Ledger and Luganodes powering the key-management layer at the heart of the system, Zama unlocks new possibilities for developers and users alike.

Luganodes is proud to help provide a secure foundation for encrypted smart contracts and privacy-first development.

About Luganodes

Luganodes is a world-class, Swiss-operated, non-custodial blockchain infrastructure provider that has rapidly gained recognition in the industry for offering institutional-grade services. It was born out of the Lugano Plan B Program, an initiative driven by Tether and the City of Lugano. Luganodes maintains an exceptional 99.9% uptime with round-the-clock monitoring by SRE experts. With support for 45+ PoS networks, it ranks among the top validators on Polygon, Polkadot, Sui, and Tron. Luganodes prioritizes security and compliance, holding the distinction of being one of the first staking providers to adhere to all SOC 2 Type II, GDPR, and ISO 27001 standards as well as offering Chainproof insurance to institutional clients.

The information herein is for general informational purposes only and does not constitute legal, business, tax, professional, financial, or investment advice. No warranties are made regarding its accuracy, correctness, completeness, or reliability. Luganodes and its affiliates disclaim all liability for any losses or damages arising from reliance on this information. Luganodes is not obligated to update or amend any content. Use of this at your own risk. For any advice, please consult a qualified professional.

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