Development and Application Prospects of FHE Technology in the Blockchain Field

Cryptographic technology has always played an important role in the advancement of human civilization, especially in information security and privacy protection, where it is indispensable. In 2008, Satoshi Nakamoto creatively combined asymmetric encryption and hash functions to design a proof-of-work mechanism that solves the double-spending problem, promoting the birth of Bitcoin and ushering in a new era of Blockchain.

With the development of the blockchain industry, cutting-edge cryptographic technologies such as zero-knowledge proofs, multi-party computation, and fully homomorphic encryption are continuously emerging. Among them, the unique characteristics of fully homomorphic encryption (FHE) allow third parties to perform arbitrary calculations and operations on encrypted data without decryption, enabling composable on-chain privacy computing and bringing new possibilities to multiple fields.

FHE allows for unlimited computations and operations on ciphertext while keeping the mathematical properties of the encrypted data unchanged. Companies like Microsoft and Zama have released open-source FHE libraries such as SEAL and TFHE, greatly advancing the development of FHE technology. In the blockchain field, Zama's fhEVM supports the use of FHE technology in Ethereum smart contracts.

Fhenix, as a pioneer, actively explores the combination of fhEVM and Rollup technology, proposing the construction of FHE-Rollups type Layer2 solutions. Fhenix also introduces the Relay module, enabling various public chains and Layer2 networks to access FHE functions.

FHE technology shows broad application prospects in areas such as full-chain gaming, DeFi, and AI. It can provide encryption protection for games to prevent real-time manipulation; protect sensitive data in DeFi, reducing MEV attacks; and allow AI to train on encrypted data, safeguarding personal privacy.

In addition to Zama and Fhenix, projects like Sunscreen, Mind Network, and PADO Labs are also actively promoting the development of the FHE ecosystem. Non-profit organizations like FHE.org provide resources for academic research and educational outreach.

With the launch of mainnets for projects like Fhenix, FHE technology is expected to be widely applied in various fields, bringing new innovations and vitality to the Blockchain.