Fhenix, the pioneering Ethereum Layer 2 network leveraging Fully Homomorphic Encryption (FHE), has successfully raised a whopping $15M Series A funding in a latest round. This milestone comes alongside the launch of its highly anticipated testnet. This marks a significant step forward in the realm of blockchain confidentiality and security.
Fhenix Receives Significant Funding via Key Investors
The Fhenix Series A round was lead by Hack VC, with notable contributions from Dao5, Amber Group, GSR, Primitive, Collider, and Stake Capital. This latest infusion of capital brings Fhenix’s total collected funding to $22M now. The funding round, initiated in March and concluded last month, underscores the growing investor confidence in Fhenix’s innovative approach to blockchain security.
Fhenix stands out for its integration of Fully Homomorphic Encryption, a groundbreaking cryptographic technology provided by Zama. FHE allows for the computation of encrypted data without needing to decrypt it first, a capability often referred to as the “holy grail” of cryptography. This technology opens up a plethora of new applications for blockchain developers, including DeFi, AI, and gaming.
Guy Itzhaki is the co-founder and CEO of Fhenix. Talking about this latest advancement, he indicated that after scaling, confidentiality is Ethereum’s next major hurdle for mainstream adoption. He also noted that Fully Homomorphic Encryption (FHE) offers the most elegant solution to encryption issues.
Fhenix Testnet Launched, Mainnet Plans Revealed
The launch of the Fhenix testnet, named Helium, enables developers to deploy “confidential” smart contracts on the Fhenix Layer 2 network. This marks 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. However, the details about a potential token launch remain undisclosed.
To attract and support developers in exploring the capabilities of its testnet, Fhenix has initiated a grants program. Though the exact size of the program has not been finalized, Itzhaki assures that it will be substantial.
Fhenix’s long-term vision extends beyond its own Layer 2 network. The company aims to drive 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, enabling Layer 1 and Layer 2 networks to access FHE services with minimal modifications.