Fhenix, a cutting-edge Ethereum Layer 2 network utilizing Fully Homomorphic Encryption (FHE), has successfully secured a massive $15M Series A funding in its latest fundraising round. This achievement coincides with the launch of its highly anticipated testnet, marking a significant advancement in blockchain confidentiality and security.
Key investors, including Hack VC, Dao5, Amber Group, GSR, Primitive, Collider, and Stake Capital, led the Fhenix Series A round. This recent injection of capital brings Fhenix’s total funding to $22M. The funding round, which began in March and concluded recently, reflects the increasing investor confidence in Fhenix’s innovative approach to blockchain security.
Fhenix is distinguished by its incorporation of Fully Homomorphic Encryption, a revolutionary cryptographic technology provided by Zama. FHE allows for computations on encrypted data without the need for decryption, a capability often described as the “holy grail” of cryptography. This technology opens up a range of new possibilities for blockchain developers in areas such as DeFi, AI, and gaming.
Guy Itzhaki, the co-founder and CEO of Fhenix, emphasized the importance of confidentiality as Ethereum’s next major challenge for mainstream adoption. He highlighted Fully Homomorphic Encryption (FHE) as the most elegant solution to encryption challenges.
The launch of the Fhenix testnet, named Helium, enables developers to deploy “confidential” smart contracts on the Fhenix Layer 2 network. This represents the first opportunity for developers to utilize FHE technology in a live environment. Looking ahead, Fhenix plans to release its mainnet in the first quarter of 2025, with details about a potential token launch yet to be disclosed.
To encourage and assist developers in exploring the capabilities of its testnet, Fhenix has introduced a grants program. Although the exact size of the program is still being determined, Itzhaki assures that it will be significant.
Fhenix’s overarching vision extends beyond its Layer 2 network. The company aims to promote data confidentiality across the entire blockchain ecosystem. A key partnership with EigenLayer is part of this strategy, focusing on the development of an FHE co-processor. This co-processor will serve as a stateless rollup, allowing Layer 1 and Layer 2 networks to access FHE services with minimal adjustments.