FHE technology is booming, bringing new opportunities to Blockchain

Cryptographic technology has played an important role in the advancement of human civilization, especially in the fields of information security and privacy protection. In recent years, with the rapid development of the Blockchain industry, a series of cutting-edge cryptographic technologies have emerged, among which zero-knowledge proofs, multi-party computation, and fully homomorphic encryption are the most notable.

Fully Homomorphic Encryption ( FHE ), as an important breakthrough in cryptography, allows third parties to perform arbitrary computations and operations on encrypted data without decryption, enabling composable on-chain privacy computing and bringing new possibilities to multiple fields.

The core feature of FHE is that it allows computations and operations on ciphertext, which can be directly mapped to plaintext, preserving the mathematical properties of the encrypted data. FHE supports an unlimited number of computations and operations on encrypted data.

In the field of FHE, Microsoft and Zama stand out with their excellent open-source products. Microsoft's SEAL and Zama's TFHE are both high-performance FHE libraries that provide developers with stable and efficient FHE implementations.

The basic operation process of FHE includes: key generation, data encryption, performing homomorphic computations, and decrypting results. The management of the decryption key is crucial, and solutions such as secure multi-party computation can be used to enhance security.

In order to implement FHE on the Blockchain, it is necessary to modify the smart contract virtual machine. The fhEVM developed by Zama is a fully homomorphic EVM that supports privacy computing with Solidity, providing developers with the possibility of using FHE in Ethereum smart contracts.

The Fhenix project combines fhEVM with Rollup technology to propose the FHE-Rollups type Layer 2 solution. It adopts the Optimistic Rollups scheme, achieving FHE functionality through components such as the Arbitrum Nitro's fraud prover variant, the fheOS core library, and the threshold service network.

Fhenix also introduced the Relay module, allowing various public chains and Layer 2 networks to connect to FHE Coprocessors to utilize FHE functionalities. Combined with EigenLayer's Restaking mechanism, it further enhances efficiency and flexibility.

FHE technology has broad application prospects in areas such as blockchain games, DeFi, and AI. It can provide privacy protection for games, reduce MEV attacks in DeFi, and protect personal privacy data in AI training.

FHE technology has been widely recognized in the industry. Ethereum founder Vitalik Buterin has repeatedly praised FHE highly. With new projects continuously emerging and funding consistently pouring in, the FHE ecosystem is ushering in rapid development.

In addition to Zama and Fhenix, a series of high-quality projects such as Sunscreen, Mind Network, PADO Labs, Arcium, and Inco Network are also worth paying attention to. Non-profit organizations like FHE.org and FHE Onchain provide valuable resources for ecological development.

With the continuous advancement of projects like Fhenix, FHE technology is expected to play a greater role in the Blockchain field, bringing new development opportunities to the industry.