Fhenix, the trailblazing Ethereum Layer 2 network that harnesses Fully Homomorphic Encryption (FHE), has 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, signaling a significant advancement in blockchain confidentiality and security.
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 injection of capital brings Fhenix’s total funding to $22 million. The funding round, which began in March and concluded last month, highlights the growing investor confidence in Fhenix’s innovative approach to blockchain security.
Fhenix distinguishes itself by incorporating Fully Homomorphic Encryption, a revolutionary cryptographic technology provided by Zama. FHE allows for the computation of encrypted data without the need to decrypt it first, a capability often referred to as the “holy grail” of cryptography. This technology opens up numerous new possibilities for blockchain developers, including applications in DeFi, AI, and gaming.
Guy Itzhaki, the co-founder and CEO of Fhenix, discussed this significant advancement, emphasizing that after scalability, confidentiality is the next major obstacle for Ethereum’s mainstream adoption. He also highlighted that Fully Homomorphic Encryption (FHE) provides the most elegant solution to encryption challenges.
The launch of Fhenix’s 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 unveil 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 initiated a grants program. While the exact size of the program is yet to be finalized, Itzhaki assures that it will be substantial.
Fhenix’s long-term vision extends beyond its Layer 2 network. The company aims to enhance data confidentiality across the entire blockchain ecosystem. As part of this strategy, Fhenix has formed a significant partnership with EigenLayer, focusing on the development of an FHE co-processor. This co-processor will serve as a stateless rollup, enabling Layer 1 and Layer 2 networks to access FHE services with minimal modifications.