Fhenix, a blockchain analysis and growth firm, is positioning itself as a full-stack infrastructure for confidential decentralized finance (DeFi) designed to convey encrypted computation instantly onto public blockchains.
Absolutely Homomorphic Encryption (FHE) is on the middle of the brand new technique, based on a press launch shared with Finbold on February 17 and a livestream on X the day prior that includes Fhenix founder Man Zyskind.
This cryptographic breakthrough permits computations to be carried out whereas knowledge stays encrypted. Such an strategy, the administration argues, eliminates publicity at each stage from execution to settlement, which places FHE forward of Zero-Information proofs, Trusted Execution Environments, and Multi-Celebration Computation.
“Privateness is, I consider, essentially the most troublesome drawback to resolve in blockchains… Lots of them, even if you happen to take a look at ZK initiatives, lots of them went to scalability as a result of that’s truly the better drawback to resolve. Including privateness on high of ZK, one thing like what Fhenix is doing, attempting to construct and scale Absolutely Homomorphic Encryption? These are very, very arduous issues to resolve. Only a few individuals can try this,” Zyskind mentioned on X.
https://t.co/XgmbxOf9bb
— Fhenix (@fhenix) February 16, 2026
Enhanced blockchain privateness
Among the many most notable improvements was CoFHE, an FHE coprocessor designed to dump encrypted computation from the principle chain. Not too long ago deployed on Base, this stateless engine is meant to make personal good contracts viable at scale, delivering throughput enhancements of as much as 5,000 occasions over earlier FHE techniques.
One other key characteristic, fhEVM, permits builders to jot down privacy-preserving functions utilizing acquainted Solidity tooling. As a substitute of studying a wholly new stack, builders can thus combine encrypted execution into an present Ethereum (ETH) suitable surroundings.
On the encrypted verification entrance, renewed give attention to DBFV indicators continued work on making encrypted computations not solely personal however verifiable in decentralized environments. Collectively, these functionalities are supposed to fight points reminiscent of knowledge leaks, that are plaguing AI brokers.
“AI brokers: they’re actually dangerous at safety and privateness proper now. They leak all data…. We have to discover methods to guard knowledge and shield it, mainly, like Fort Knox,” Zyskind added.
Programmable digital privateness and institutional safety
With options like Shielded Mode for end-to-end encrypted funds and experiments integrating privateness into HTTP 402 fee requirements dubbed Fhenix402, the corporate believes the current improvements have quite a few implications for broader Web3.
The knowledge shared with Finbold cited personal governance votes, encrypted identities, confidential enterprise analytics, and front-running safety as some examples. Extra notably, nevertheless, the livestream on X referenced institutional curiosity.
As mentioned by the audio system, J.P. Morgan had already approached Fhenix up to now, exploring the tokenization of what was described as $1.5 trillion in belongings underneath administration. Sadly, such efforts have been unattainable with out customer-level privateness, however the instance exhibits how giant monetary gamers already acknowledge privateness as a structural requirement, not a luxurious.
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