Fhenix, a trailblazing Ethereum Layer 2 network that harnesses Fully Homomorphic Encryption (FHE), has successfully secured an impressive $15 million in Series A funding in its latest round. This notable 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 significant contributions from Dao5, Amber Group, GSR, Primitive, Collider, and Stake Capital. This recent infusion of capital brings Fhenix’s total funding to $22 million. The funding round, which commenced in March and concluded last month, highlights the increasing investor confidence in Fhenix’s innovative approach to blockchain security.
Fhenix distinguishes itself through the 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, expressed his thoughts on this latest achievement, 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.
The launch of Fhenix’s testnet, named Helium, allows developers to deploy “confidential” smart contracts on the Fhenix Layer 2 network. This represents the first opportunity for developers to leverage FHE technology in a live environment. Looking ahead, Fhenix plans to launch its mainnet in the first quarter of 2025, although details about a potential token launch have not been disclosed.
To encourage and support developers in exploring the capabilities of its testnet, Fhenix has initiated a grants program. While the exact size of the program has yet to be finalized, Itzhaki assures that it will be significant.
Fhenix’s long-term vision extends beyond its own 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 act as a stateless rollup, allowing Layer 1 and Layer 2 networks to access FHE services with minimal modifications.