• Fhenix, a Layer 2 blockchain focused on confidentiality, secured $15 million in Series A funding led by Hack VC.
• The $15 million funding round includes investments from Dao5, Amber Group, Primitive, GSR, Collider, and Stake Capital.

Fhenix, an innovative Layer 2 blockchain with a focus on confidentiality, has raised $15 million in a Series A funding round. Leading this round was Hack VC, with participation from Dao5, Amber Group, Primitive, GSR, Collider, and Stake Capital. This latest investment brings Fhenix’s total funding to $22 million. The funds will support the launch of Fhenix’s open testnet, called Helium, allowing developers to deploy smart contracts on the network.

Fully homomorphic encryption (FHE) is a type of cryptography that allows data to be processed without being decrypted. Fhenix is the first blockchain to integrate FHE, providing an EVM-compatible smart contract platform that enables developers to encrypt parts or all of their Solidity-based applications without needing to learn FHE. 

Guy Zyskind, co-founder of Fhenix, emphasized his dedication to secure computation, saying:

“My life’s work has been research into secure computation with the goal of bringing confidentiality onchain. After exploring every available technical solution to this problem, I concluded FHE is the best possible solution. The launch of the Fhenix testnet is an important step towards bringing encrypted computation onchain.”

FHE allows for the computation of encrypted data, opening up new possibilities for developers. Potential applications include confidential voting, blind auctions, decentralized identity, DeFi, AI, and gaming. Fhenix aims to provide a secure platform for blockchain developers to implement their ideas. 

Guy Itzhaki, CEO of Fhenix, stressed the importance of confidentiality for Ethereum’s mainstream adoption, noting:

“After scaling, confidentiality is the next major hurdle Ethereum needs to solve to reach mainstream adoption. 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.”

Fhenix has partnered with EigenLayer to develop FHE Coprocessors, which enable host chains, such as Ethereum and other Layer 2 or Layer 3 chains, to offload specific computational tasks to a designated processor. This feature allows developers on any EVM-compatible chain to integrate encrypted computation into their applications.

Following the fundraising and testnet launch, Fhenix will continue testing and development, with plans for an eventual mainnet launch. Meanwhile, the project encourages developers to deploy their smart contracts on the open testnet and apply for early access to its grants program.

About Fhenix

Fhenix is the first Ethereum Layer 2 to enable confidential smart contracts using Fully Homomorphic Encryption (FHE), a cryptographic scheme that allows the computation of encrypted data.

 Fhenix is EVM-equivalent, allowing developers to write their smart contracts in Solidity using familiar tools and selectively encrypt them with FHE. 

Fhenix aims to advance Ethereum application development by bringing confidentiality to smart contracts, transactions, and onchain assets.

About Hack VC

Hack VC is a Web3 venture capital firm that partners with builders creating the future of the internet.

For more information, visit Fhenix and Hack VC.

Contact Information:

Makena Walsh

Content Manager

mak@fhenix.io