Fhenix, a cutting-edge Ethereum Layer 2 network utilizing Fully Homomorphic Encryption (FHE), has secured an impressive $15M in Series A funding in its latest financing round. This achievement coincides with the unveiling of its highly anticipated testnet, marking a significant advancement in blockchain security and privacy.
Major investors such as Hack VC, Dao5, Amber Group, GSR, Primitive, Collider, and Stake Capital led the Series A round for Fhenix, bringing the total funding raised to $22M. The funding process, which began in March and concluded recently, reflects the increasing confidence among investors in Fhenix’s innovative approach to enhancing blockchain security.
Fhenix distinguishes itself through its incorporation of Fully Homomorphic Encryption technology from Zama, a revolutionary cryptographic solution. FHE allows for computations on encrypted data without the need for decryption, a capability often hailed as the “holy grail” of cryptography. This breakthrough technology opens up new possibilities for blockchain applications in areas such as DeFi, AI, and gaming.
Guy Itzhaki, the co-founder and CEO of Fhenix, emphasized the significance of this latest development, highlighting that after scalability, confidentiality is the next major challenge for Ethereum’s widespread adoption. He also emphasized that Fully Homomorphic Encryption (FHE) provides an elegant solution to encryption challenges.
The launch of the Fhenix testnet, named Helium, allows developers to deploy “confidential” smart contracts on the Fhenix Layer 2 network, showcasing the practical application of FHE technology in a live environment. Looking ahead, Fhenix aims to roll out its mainnet in the first quarter of 2025, although details regarding a potential token launch are yet to be disclosed.
To encourage and support developers in exploring the capabilities of its testnet, Fhenix has introduced a grants program, with the exact size still being determined. Itzhaki has assured that the program will be significant and beneficial for developers.
Fhenix’s vision extends beyond its own Layer 2 network, with plans to drive data confidentiality throughout the entire blockchain ecosystem. A strategic partnership with EigenLayer is in place to develop an FHE co-processor, serving as a stateless rollup to facilitate access to FHE services for Layer 1 and Layer 2 networks with minimal adjustments.