Fhenix Secures $7 Million in Funding to Pioneer Blockchain’s Privacy Revolution

Key takeaways

• Fhenix is a start-up that uses fully homomorphic encryption (FHE) to create a confidential smart contract platform compatible with Ethereum.
• Fhenix has raised $7 million in seed funding from various investors to develop and launch its platform.
• Fhenix has partnered with Zama to integrate the fhEVM protocol that enables FHE on the EVM.

Fhenix, a start-up based in Israel, has raised $7 million in seed funding to develop the first blockchain platform that uses a powerful encryption technique. This innovative technique empowers users to process and manipulate data on public blockchain networks without the need to expose sensitive information.

Technology behind Fhenix: Fully Homomorphic Encryption

The encryption technique, known as fully homomorphic encryption (FHE), allows computations to be performed directly on encrypted data, without ever decrypting it. This means that users can store and manipulate their data on a public blockchain network, while keeping it confidential from anyone else, including the network operators.

Fhenix aims to leverage FHE to create a new kind of smart contract platform, where developers can write applications that use encrypted data in various ways, such as gaming, voting, artificial intelligence and more. The Fhenix platform seamlessly integrates with Ethereum, the most popular blockchain for smart contracts. Developers can leverage familiar programming languages and tools, facilitating a smooth transition into this groundbreaking ecosystem.

“Fhenix addresses a huge problem in the Ethereum ecosystem: a lack of encryption for commercially sensitive data,” said Guy Zyskind, the founder of Fhenix and Secret, another privacy-focused blockchain project. “Fhenix gives users the confidence to put sensitive data on public blockchains while also giving developers the tools to compute and transform that data for the first time.”

Fhenix is powered by the fhEVM, a set of extensions for the Ethereum Virtual Machine (EVM) that enable FHE integration. The fhEVM protocol was originally developed by Zama, a leading cryptography company that specializes in FHE solutions for blockchain and artificial intelligence. Fhenix and Zama have formed a strategic partnership to bring FHE to the blockchain space.

Rand Hindi, CEO of Zama, emphasized the transformative potential of FHE within blockchain, predicting the emergence of countless new use cases. These include blind auctions, on-chain identity attestations, confidential real-world asset tokenization, private voting for DAOs, and more. Developers are just beginning to explore the extensive possibilities enabled by data privacy as a fundamental concept and the vast potential of FHE and its applications.

Investors behind Fhenix

Fhenix was founded in 2023 by Guy Itzhaki, a former director at Intel’s Homomorphic Encryption & Blockchain Division, and Guy Zyskind, who previously founded Secret, a blockchain that enables private transactions and computations. The team also includes experts in cryptography, blockchain and software engineering.

Fhenix embarked on its journey in July 2023 with the launch of a private development network (devnet), providing a fertile ground for interested developers to delve into the realm of FHE applications, fostering experimentation and innovation. Looking ahead, the startup is gearing up to unveil a public test network in early 2024, replete with enticing incentives to motivate developers to construct and deploy encrypted smart contracts on its pioneering platform.

Wrapping up

Fhenix has raised $7 million in seed funding to pioneer blockchain innovation by harnessing fully homomorphic encryption (FHE). This groundbreaking encryption technique enables computations on encrypted data without compromising confidentiality, paving the way for a new breed of smart contract platforms compatible with Ethereum. Fhenix’s partnership with Zama and integration of the fhEVM protocol highlight its commitment to advancing FHE within the blockchain space, unlocking innovative use cases. As Fhenix gears up for a public test network launch in early 2024, it promises to usher in a more secure and private era of blockchain technology, brimming with transformative potential for developers and users alike.