Israeli blockchain company Fhenix has secured $15 million in funding backed by investors from Japan and the US, including Offchain Labs, to enhance blockchain privacy using Fully Homomorphic Encryption (FHE).
This investment underscores Fhenix's potential to revolutionize blockchain privacy, possibly impacting the Ethereum ecosystem and DeFi projects with enhanced security solutions.
Fhenix has successfully secured $15 million in funding to enhance blockchain privacy. This initiative involves strategic partners aiming to innovate the use of Fully Homomorphic Encryption (FHE) in the crypto industry.
The funding round led by Hack VC and other prominent investors underscores strong support. Fhenix, driven by CEO Guy Itzhaki and Founder Guy Zyskind, is committed to integrating cutting-edge encryption technologies.
"After building in crypto for over a decade, I came to realize that FHE is the technology best-suited to providing private computation on the blockchain. I can't think of better partners to help take FHE mainstream than the team that created interactive fraud proofs for optimistic rollups." — Guy Zyskind, Founder, Fhenix
Significant Step for Private Computation on Blockchain
Fhenix's funding marks a significant step toward providing private computation on the blockchain. Industry stakeholders recognize this as a crucial move in addressing existing privacy challenges.
The company's initiative is expected to influence Ethereum's DeFi ecosystem significantly. Experts highlight Fhenix's potential impact on ETH and related ERC-20 tokens, emphasizing the anticipated growth in privacy-preserving applications.
Fhenix's Novel Approach with Fully Homomorphic Encryption
Projects like Secret Network set precedents for blockchain privacy advancements. Fhenix is adopting a novel approach with FHE, diverging from zero-knowledge proofs typically used by other networks.
Analysts from Kanalcoin suggest Fhenix's progress could lead to broader adoption of privacy layers within DeFi. They anticipate that by enabling private transactions, this development may spur new innovations in the blockchain realm.