Fhenix, the trailblazing Ethereum Layer 2 network that utilizes the revolutionary technology of Fully Homomorphic Encryption (FHE), has successfully secured an impressive $15 million in Series A funding in its latest funding round. This significant achievement coincides with the launch of its highly anticipated testnet, representing a significant advancement in the field of blockchain confidentiality and security.
The Fhenix Series A round was led by Hack VC, with notable contributions from Dao5, Amber Group, GSR, Primitive, Collider, and Stake Capital. This latest injection of capital brings Fhenix’s total funding to an impressive $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.
What sets Fhenix apart is its integration of Fully Homomorphic Encryption, a groundbreaking cryptographic technology provided by Zama. FHE allows for 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 multitude of new possibilities for blockchain developers, including applications in DeFi, AI, and gaming.
Fhenix’s co-founder and CEO, Guy Itzhaki, emphasizes the significance of this latest development, stating that after scalability, confidentiality is the next major obstacle for Ethereum’s widespread adoption. He also highlights Fully Homomorphic Encryption (FHE) as the most elegant solution to encryption challenges.
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 marks the first real-world application of FHE technology for developers. Looking ahead, Fhenix plans to launch its mainnet in the first quarter of 2025, although details regarding a potential token launch have not been disclosed.
To attract and support developers in exploring the capabilities of its testnet, Fhenix has introduced a grants program. While the exact size of the program is 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 promote data confidentiality throughout the entire blockchain ecosystem. A key partnership with EigenLayer is an integral part of this strategy, focusing on the development of an FHE co-processor. This co-processor will serve as a stateless rollup, facilitating access to FHE services for Layer 1 and Layer 2 networks with minimal modifications.