Fhenix, the innovative Ethereum Layer 2 network that utilizes Fully Homomorphic Encryption (FHE), has successfully secured an impressive $15 million in Series A funding in its most recent funding round. This major achievement coincides with the launch of its highly anticipated testnet, marking a significant advancement in blockchain security and confidentiality.
The Series A round for Fhenix was led by Hack VC, with notable contributions from Dao5, Amber Group, GSR, Primitive, Collider, and Stake Capital. This recent injection of funds brings Fhenix’s total funding to $22 million. The funding round, which began in March and concluded last month, highlights the increasing confidence investors have in Fhenix’s innovative approach to blockchain security.
Fhenix distinguishes itself through its integration of Fully Homomorphic Encryption, a revolutionary cryptographic technology provided by Zama. FHE enables the computation of encrypted data without the need for decryption, a capability often referred to as the “holy grail” of cryptography. This technology opens up a wide range of new possibilities for blockchain developers, including applications in DeFi, AI, and gaming.
Guy Itzhaki, the co-founder and CEO of Fhenix, commented on this latest advancement, emphasizing that after scalability, confidentiality is the next major challenge for Ethereum’s mainstream adoption. He also highlighted that Fully Homomorphic Encryption (FHE) offers the most elegant solution to encryption issues.
With the launch of the Fhenix testnet, named Helium, developers now have the opportunity to deploy “confidential” smart contracts on the Fhenix Layer 2 network. This represents the first chance for developers to leverage FHE technology in a live environment. Looking ahead, Fhenix plans to release its mainnet in the first quarter of 2025, although details about a potential token launch remain undisclosed.
To encourage and support developers in exploring the capabilities of its testnet, Fhenix has introduced a grants program. While the exact size of the program has yet to be determined, Itzhaki assures that it will be substantial.
Fhenix’s long-term vision extends beyond its own Layer 2 network. The company aims to enhance data confidentiality across the entire blockchain ecosystem. As part of this strategy, Fhenix has formed a key partnership with EigenLayer, focusing on the development of an FHE co-processor. This co-processor will function as a stateless rollup, enabling Layer 1 and Layer 2 networks to access FHE services with minimal modifications.