TLDR
- Fhenix, a privacy-focused blockchain developing Ethereum Layer 2 networks, raised $15 million in a Series A funding round led by Hack VC.
- The funding round brings Fhenix’s total funding to $22 million after a $7 million seed round in September 2023.
- Fhenix is leveraging fully homomorphic encryption (FHE) technology from cryptography firm Zama to enable data confidentiality on its network.
- Fhenix launched an open testnet called Helium, allowing developers to deploy “confidential” smart contracts on its Layer 2 network.
- Fhenix plans to launch its mainnet in the first quarter of 2025 and has established a grants program to attract developers to its testnet.
Fhenix, a pioneering blockchain company focused on data confidentiality, has reached a significant milestone by securing $15 million in a Series A funding round.
This investment round was led by Hack VC, with participation from notable investors such as Dao5, Amber Group, Primitive Ventures, GSR, Collider Ventures, and Stake Capital.
The recent funding success brings Fhenix’s total raised capital to $22 million, following a $7 million seed round in September 2023, led by Multicoin Capital and other investors.
This substantial financial backing underscores the growing interest and confidence in Fhenix’s innovative approach to addressing data privacy and confidentiality on blockchain networks.
At the core of Fhenix’s technology is the integration of fully homomorphic encryption (FHE), a cutting-edge cryptographic technique provided by the company Zama.
FHE allows for direct computation on encrypted data without the need to decrypt it first, ensuring end-to-end data confidentiality throughout the entire processing cycle.
This remarkable capability has long been considered the “holy grail” of cryptography and opens up a wide range of new possibilities for blockchain developers across various sectors, including decentralized finance (DeFi), artificial intelligence (AI), and gaming.
Coinciding with the successful funding round, Fhenix has launched an open testnet called Helium, previously referred to as Renaissance.
This testnet marks a significant step forward, enabling developers to deploy “confidential” smart contracts on the Fhenix Layer 2 network for the first time.
By leveraging FHE technology, developers can now explore and experiment with the capabilities of confidential computing on a live blockchain environment.
Fhenix’s co-founder and CEO, Guy Itzhaki, who previously served as a director at Intel’s Homomorphic Encryption and Blockchain Division, emphasized the importance of confidentiality for mainstream blockchain adoption.
“After scaling, confidentiality is the next major hurdle Ethereum needs to solve in order to reach mainstream adoption,”
Itzhaki stated, highlighting the crucial role FHE plays in addressing this challenge.
