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 latest round. This achievement coincides with the launch of its highly anticipated testnet, marking a significant advancement in the field of blockchain security and confidentiality.
The Series A funding 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, demonstrates the increasing confidence investors have 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 enables the computation of encrypted data without the need for decryption, which is often considered the “holy grail” of cryptography. This technology opens up numerous possibilities for blockchain developers, including applications in DeFi, AI, and gaming.
Guy Itzhaki, the co-founder and CEO of Fhenix, expressed his excitement about this latest milestone, stating that after scalability, confidentiality is the next major challenge for Ethereum’s mainstream adoption. He also emphasized that Fully Homomorphic Encryption (FHE) offers an elegant solution to encryption issues.
The launch of Fhenix’s testnet, called Helium, allows 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. However, 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 own Layer 2 network. The company aims to promote data confidentiality throughout 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 serve as a stateless rollup, enabling Layer 1 and Layer 2 networks to access FHE services with minimal modifications.
