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 funding round. This 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 capital brings Fhenix’s total funding to $22 million. The funding round, which began in March and concluded last month, demonstrates the growing investor confidence in Fhenix’s innovative approach to blockchain security.
Fhenix stands out for its integration of Fully Homomorphic Encryption, an innovative cryptographic technology provided by Zama. Fully Homomorphic Encryption allows for the computation of encrypted data without the need for decryption, a capability often regarded 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, emphasized the significance of this latest advancement, stating that after scalability, confidentiality is the next major hurdle for Ethereum’s mainstream adoption. He also highlighted that Fully Homomorphic Encryption (FHE) offers 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 release 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. Although 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 Layer 2 network. The company aims to enhance 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 function as a stateless rollup, allowing Layer 1 and Layer 2 networks to access FHE services with minimal modifications.
