Cloud computing is the delivery of various services via the Internet. These sources include instruments and applications like data storage, servers...
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The modern web can't function without cloud computing services. Web3 is not an exception, but data security is an issue -- you need to give away your information to third parties you cannot trust. Confidential computing and Trusted Execution Environment (TEE) can protect data in use and, therefore, solve this problem, but it requires special hardware (e.g., Intel CPUs with SGX support)
As far as I know, only Super Protocol is currently building a Web3 cloud with integrated confidential computing. I tried their public testnet (anyone can), it's still in an early stage, but the concept is promising.