The quest for personal privacy has long been the holy grail of cryptography, sparking an ideological battle that has only intensified in the Internet age.
While end-to-end encryption (E2EE) and zero-knowledge proofs (ZKPs) have made significant strides in recent years, they still fall short of enabling fully secure computation of sensitive data. This limitation has brought Fully Homomorphic Encryption (FHE) into the spotlight as a potential game-changer in privacy technology.
Indeed, some argue that FHE holds the key to transforming the landscape of secure computation. But are they right? And how does FHE differ from other privacy-preserving technologies?
Understanding FHE
FHE is a sophisticated, quantum-resilient form of cryptography that allows computations to be performed on encrypted data without first decrypting it.
While many assume this functionality is already possible with E2EE, this is not the case. Traditional E2EE requires data to be decrypted and re-encrypted before it reaches the end user’s device, creating a potential point of failure in the process. Even zero-knowledge solutions, while powerful, cannot match FHE’s ability to enable full end-to-end computation of encrypted information.
Though the concept of FHE was introduced in the late 1970s, its practical potential was not demonstrated until 2009, when computer scientist Craig Gentry presented a feasible construction using lattice-based cryptography. This breakthrough marked the start of an exciting era in cryptographic research and development.
Since Gentry’s initial demonstration, FHE technology has evolved considerably, making it increasingly viable for various sectors. Because FHE can be applied to any type of computation, it seems ideally suited to provide the level of privacy protections that users are beginning to crave — and demand.
Google’s recent development of its HEIR compiler toolchain marks a significant step in making FHE applications more efficient and accessible across different hardware platforms. Other tech giants, including Apple, are also investing heavily in FHE research and development, underscoring its potential to boost data privacy and security across the board.
Fhenix is Bringing FHE Onchain
Fhenix, an EVM-compatible Layer-2 blockchain, is dedicated to bringing FHE to the web3 world. Designed to address one of Ethereum’s key limitations – its lack of native encryption – the network enables blockchain developers to deploy encrypted smart contracts. This means that even developers with limited or no encryption expertise can create decentralized applications (dApps) capable of handling sensitive data, including those operating in untrusted environments.
Powered by fhEVM, Fhenix’s unique take on the Ethereum Virtual Machine, the network employs a Layer-2 Rollup structure to avoid the computational overhead of performing FHE calculations on every node. Developers have the flexibility to build privacy-preserving dApps directly on Fhenix or utilize its coprocessors to selectively encrypt specific aspects of their applications.
Fhenix’s recent partnership with EigenLayer to develop FHE coprocessors is particularly noteworthy, as it enables host chains to offload specific computational tasks to dedicated coprocessors. Secured by Fhenix’s optimistic FHE rollup infrastructure and EigenLayer’s restaking mechanism, these coprocessors are uniquely capable of maintaining data confidentiality during computation — unlike their ZK counterparts.
It’s no surprise that Fhenix has attracted significant attention from investors, having recently secured $15 million in Series A funding from prominent VCs, bringing its total funding to $22 million. With its mainnet launch expected in the first quarter of 2025, the project invites interested developers to explore the power of confidential computation through its bounty program.
A Preponderance of Privacy Possibilities
The implementation of FHE technology through platforms like Fhenix opens up exciting opportunities for dApps. Potential use cases include confidential voting systems, trustless gaming and gambling platforms, private social networks, and decentralized identity solutions.
As FHE development progresses and solutions like Fhenix continue to mature, we may be witnessing the rise of a new paradigm in secure, private computation; one that promises to deliver uncompromising confidentiality to the often unregulated world of DeFi once and for all.
