Quick take:
- The company also announced the launch of the open testnet of its data confidentiality layer called Helium.
- Fhenix is leveraging fully homomorphic encryption technology from cryptography firm Zama to enable full confidentiality in its network.
- The latest fundraising brings the total raised by Fhenix to $22 million following a Seed round announced in September 2023.
Data confidentiality-focused layer-2 Fhenix has completed a $15 million Series A round led by Hack VC. The fundraising also attracted participation from Dao5, Amber Group, Primitive Ventures, GSR, Collider Ventures and Stake Capital.
The fundraising brings the total raised to $22 million following a $7 million seed round announced in September 2023.
The company also announced the launch of the open testnet of its platform called Helium, powered by FHE technology. Fhenix has teamed up with fully homomorphic encryption (FHE) technology firm Zama to bring data confidentiality to its network.
With FHE technology data is encrypted at all times, thus reducing the likelihood of sensitive information ever getting compromised. This allows smart contract systems to use data without compromising on privacy.
Fhenix is not the first blockchain company to team up with Zama for FHE technology. Earlier this year, another EVM-compatible data confidentiality layer Inco announced it was using the same technology, while Shiba Inu also collaborated with Zama to enhance ecosystem privacy and security.
According to Fhenix co-founder and CEO Guy Itzhaki, confidentiality is the next step after scaling in the evolution of the blockchain technology industry, The Block reported.
“After scaling, confidentiality is the next major hurdle Ethereum needs to solve in order to reach mainstream adoption,” Itzhaki said. “FHE is the most elegant solution to the problem of encryption because, unlike existing confidentiality solutions based on zero knowledge technology, it allows for end-to-end computation of encrypted data.”
The company remains on course to launch its mainnet in the first quarter of 2025, according to Itzhaki and has set up a grand program (of yet to be determined amount) to attract developers to its testnet.
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