The Future of Private Computing with Fully Homomorphic Encryption (FHE)

How AlphaEngine Works: A Two-Pillar SolutionAlphaEngine's architecture is a powerful synergy of three key technologies: the composability of Uniswap v4 Hooks, the privacy of Fhenix's FHE coprocessor, and the decentralized trust of an EigenLayer AVS. This creates a system that executes complex, confidential logic off-chain while settling securely on-chain.

After six months of intensive user research, one pattern became crystal clear: Institutional privacy has a clearer ROI than consumer privacy- yet it’s not limited to institutions. High-stakes users with public reputations actively seek it, and even retail users signal the same through their habits: splitting activity across wallets, withdrawing through intermediaries, and deliberately avoiding linkability.

At Fhenix, our mission has always been simple: bring encryption to Ethereum and make privacy usable. Today, we’re taking another major step — [CoFHE] (https://www.fhenix.io/blog/introducing-cofhe-fhe-based-encryption-everywhere-with-a-single-line-of-code), our Fully Homomorphic Encryption coprocessor, is now live on Base. This marks the first FHE coprocessor running on Base, unlocking encrypted computation and private smart contracts directly on one of Ethereum’s most active L2s.

Right now, accessing digital content online is broken. You either give away your personal data to “free” platforms, commit to expensive subscriptions, or navigate endless paywalls.The 402 HTTP status code “Payment Required”, has existed for decades, waiting for a proper micropayment layer to make it real.Base’s x402 changes that. Want to read an article? The server responds with “402 Payment Required: $0.50” and you pay directly.No accounts, no subscriptions, no stored payment methods, just seamless access. There’s just one problem: every payment is public.

The agentic internet is coming. Standards like x402 and ERC-8004 are already defining it. AI agents will handle millions of payments, identity verifications, and coordination tasks. The only question is: Do we architect privacy into these systems from day one? Or do we build them transparent and spend years trying to retrofit privacy later? Because here’s the reality: You cannot bolt privacy onto a transparent system. Privacy has to be foundational, or it doesn’t exist at all. Privacy needs to be by design.

Ethereum’s missing privacy layer is anonymity. Guy Zyskind explains why it’s hard- and how Fhenix and Fluton are using FHE to make private, composable DeFi real.

Tel Aviv / Tokyo — October 22, 2025 — Fhenix, the leading infrastructure protocol powering Private DeFi via homomorphic encryption, today announced a strategic investment from BIPROGY and Translink Sustainability & Innovation Fund. BIPROGY Inc. is one of Japan’s largest IT service providers, with a strong footprint in the financial sector. This move underscores the growing necessity of privacy solutions for institutional adoption of Web3 and demonstrates strong institutional confidence in Fhenix’s technology. The investment lays critical groundwork for Fhenix’s deeper expansion into the Japanese Web3 ecosystem.

No, we’re not here to start World War III - but let’s get one thing straight: anonymity ≠ confidentiality. Think of confidentiality as putting your data in a vault, and anonymity as taking your name off the door. These are distinct but complementary privacy properties that address different aspects of user protection. Confidentiality hides what you're doing, including transaction amounts, token types, and trading strategies. Anonymity hides who you are, protecting wallet addresses and preventing identity linkability across transactions.

Fhenix’s new Threshold (FHE) Decryption eliminates this bottleneck — and the breakthrough has already been recognized by the academic cryptography community.Our paper detailing this innovation has been accepted to @acm_ccs 2025 (Conference on Computer and Communications Security) — one of the most prestigious global conferences in security, privacy, and applied cryptography.This acknowledgment places Fhenix’s research alongside the work of Microsoft, Google, Meta, Stanford, and MIT — validating that our progress isn’t just fast… it’s foundational.

Fully Homomorphic Encryption, once considered impossible by leading cryptographic experts, is finally here. It is encryption’s unicorn technology, allowing for the arbitrary computation of encrypted data and in turn…

Fhenix leverages cutting-edge Fully Homomorphic Encryption (FHE) technology to introduce for the first time native encryption capabilities into EVM smart contracts, enabling computation over encrypted data. This enhances data…

This article will provide a simplified overview of Fhenix technical whitepaper’s first iteration. Given that our work concerns cutting-edge technical research, we will be continuously updating it to incorporate…

Blockchain technology is currently poised to be the next major disruptor in various industries, promising widespread impact. However, it faces a critical limitation: all on-chain data is public. To…

This transcript captions a Space we hosted a few weeks ago, with Kyle Samani, Tarun Chitra, Guy Zyskind and Guy Itzhaki. Click here to tune in the Space recording.…

Introduction Blockchain’s transparency, while promoting trust, presents challenges for data that require privacy. This is especially crucial in trustless gaming, where multiplayer games risk exposing sensitive data, leading to…

Fhenix is pioneering a new era in computing where privacy and security are foundational elements for all. Core to this is forming meaningful relationships and sharing insights with industry…

TLDR: FHE vs. ZKP:Fully Homomorphic Encryption (FHE) offers a more flexible solution than ZKPs for blockchain, enabling private data validation. Their combination could transform confidential decentralized finance (DeFi). Challenges…

A booming area of technological advancement is Generative AI. OpenAI’s ChatGPT reached 100 million monthly active users only two months post-launch, making it the fastest-growing consumer app ever. Bloomberg…

TLDR: On-chain FHE faces 5 areas of challenge, with Part 1 covering nascent FHE schemes/libraries/compilers, as well as secure threshold decryption. This article covers ZKPs, Data Availability optimization, and…

TLDR: On-chain auctions are critical to blockchain, responsible for liquidations, token sales, and more. However, blockchain’s innate transparency results in privacy, integrity, and regulatory compliance remaining major issues for…

TLDR: There are 7 areas of blockchain that are limited by blockchain’s innate transparency. This list is only growing, and Fhenix’s ability to incorporate Fully Homomorphic Encryption (FHE) on-chain…

The CoFHE testnet is now live on Ethereum Sepolia testnet, with additional EVM-compatible chains coming soon.

Introduction: Decentralised Finance (DeFi) is growing rapidly and bringing trading, borrowing & lending, derivatives, and more on-chain. And yet, the public nature of blockchain is a significant limitation for many…

Fhenix is excited to announce the development of FHE coprocessors in collaboration with EigenLayer. Both projects will be dedicating significant resources towards FHE coprocessors, bringing wide-scale confidential compute to…

Today marks an important milestone in our mission to bring confidentiality to Ethereum through the first Layer 2 powered by the holy grail of cryptography: fully homomorphic encryption (FHE).…

We’re pleased to announce a partnership with Privasea, a leader in FHEML-focused AI + DePIN computing. The partnership will utilize both Privasea and Fhenix’s expertise to advance development of…

We’re excited to announce a partnership with zkPass: an oracle protocol that provides secure, verifiable sharing of private internet data. There’s a natural synergy between an identity and attestation…

Get compensated to build the future of onchain confidentiality. Since launching the Fhenix Helium testnet in June we’ve hit the hackathon circuit hard. It’s been a treat to see…

Fhenix is an L2 and coprocessor that provides a platform for builders to leverage the power of FHE to build confidentiality-enabled applications on Ethereum. By lowering the barrier of…

We’ve been in talks with Offchain Labs, the people behind Arbitrum and one of the most cracked teams in the crypto space, on how to solve for encryption in Ethereum.

At Fhenix, our mission is to make encrypted computation a first-class primitive onchain. Today, we’re proud to announce a major milestone in that journey: CoFHE is now live on Arbitrum Sepolia.

Mid-2025 check-in: Fhenix is shaping up to be the backbone of encrypted computation on Ethereum. We’re all-in on making FHE the go-to standard for onchain confidentiality. Here’s a look at what we’ve shipped lately — and a sneak peek at what’s coming next as we keep building the Confidential DeFi layer for Ethereum.

Fhenix integrates FHE so smart contracts can compute directly on encrypted data without decryption, keeping data private throughout processing.