Fhenix Closes $7 Million Seed Round to Develop Confidential Blockchain
Fhenix, an Ethereum-based blockchain project, has successfully raised $7 million in a seed funding round led by Multicoin Capital and Collider Ventures. Other notable investors include Bankless, Node Capital, and HackVC. The funds will be used to support the development of Fhenix’s public testnet, which is scheduled to launch in early 2024.
Addressing Privacy Concerns with Fully Homomorphic Encryption
Fhenix aims to address the privacy concerns associated with public blockchains by implementing a unique form of cryptography called fully homomorphic encryption (FHE). With FHE, computations can be performed on encrypted data without the need for decryption. This ensures that information remains private throughout transactions and smart contract executions.
Fhenix CEO, Guy Itzhaki, believes that FHE is now a mature cryptographic technology that can be effectively utilized. He emphasizes that the lack of confidentiality in the blockchain space is a major obstacle for enterprise adoption.
Advantages over Zero-Knowledge Proofs
Itzhaki positions Fhenix’s approach as superior to its main rival, Zero-Knowledge (zK) proofs. While zK proofs offer scalability benefits, Itzhaki argues that they are too complex in terms of privacy and have limited use cases. In contrast, FHE provides EVM-compatibility and enables various applications such as private voting in DAOs, blind auctions, KYC identity attestations, and confidential tokenization of real-world assets.
Long-Term Goal and Developer Empowerment
Fhenix is a collaboration involving Secret Network and aims to be an extension that offers optional confidentiality. Itzhaki highlights the flexibility of their solution, allowing developers to choose what they want to encrypt based on their specific needs.
Hot Take: Fhenix Pioneers Confidentiality in Public Blockchains
Fhenix’s successful seed round funding demonstrates the growing demand for privacy-focused solutions in the blockchain industry. By implementing fully homomorphic encryption, Fhenix offers a mature cryptographic technology that can address the lack of confidentiality in public blockchains. With its EVM-compatibility and wide range of use cases, Fhenix has the potential to drive enterprise adoption and empower developers to protect sensitive information while leveraging the benefits of blockchain technology.
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