KEY FACT: Zama, a cryptography firm, has launched the fhEVM Coprocessor on Ethereum's Sepolia testnet, to enable developers to build privacy-focused decentralized applications (DApps) on any Ethereum Virtual Machine (EVM)-compatible blockchain. Using Fully Homomorphic Encryption (FHE), this tool will ensure that data remains encrypted during computation, combining blockchain transparency with enhanced privacy. The fhEVM Coprocessor supports around 20 transactions per second (TPS) with plans for scalability and simplifies creating confidential smart contracts in Solidity, broadening use cases like encrypted DeFi, private tokens, and secure voting. Zama anticipates a mainnet launch by mid-2025, marking a breakthrough in privacy-preserving blockchain applications following a $73 million Series A funding earlier this year.

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Source: Zama/X

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Zama Launches fhEVM Coprocessor to Revolutionize Privacy in Blockchain Applications

Zama, a leading cryptography firm, has unveiled its latest innovation, the fhEVM Coprocessor, on Ethereum's Sepolia testnet. This tool will enable developers to create confidential smart contracts across any blockchain compatible with the Ethereum Virtual Machine (EVM). The company anticipates a full mainnet launch by mid-2025. This update was made public by Zama's Engineering Director on the X platform on December 6, 2024.

Thrilled to announce the release of the fhEVM Coprocessor on Sepolia! A huge milestone for privacy-preserving computation on Ethereum.
Proud of the entire Zama team for their incredible work. 💛
Happy hacking!
Source

The fhEVM Coprocessor leverages Fully Homomorphic Encryption (FHE), a technology that allows computations on encrypted data without the need for decryption. This advancement ensures that data remains encrypted throughout processing, thereby enhancing privacy without compromising the transparency inherent to blockchain systems. According to Zama, this development will effectively allow Ethereum to operate with complete end-to-end encryption.

Rand Hindi, CEO of Zama, emphasized the significance of this development in harmonizing blockchain transparency with privacy requirements. He stated thus:

"The implementation of the fhEVM native protocol has already led to the creation of significant blockchain infrastructures capable of reconciling blockchain transparency with the need for heightened privacy."

Traditional public blockchains have faced challenges regarding data exposure, while private blockchains often lack the desired transparency. Although Zero-Knowledge (ZK) solutions have made strides in enhancing privacy, they sometimes do so at the expense of blockchain composability. Zama's fhEVM addresses these issues by enabling encrypted data to be processed while maintaining composability and offering programmable privacy controls.

In terms of performance, the fhEVM Coprocessor currently supports approximately 20 transactions per second (TPS), with plans to scale this capacity to hundreds or even thousands of TPS in the future. This scalability positions the technology as a viable solution for a wide array of applications.

The introduction of the fhEVM Coprocessor simplifies the development of privacy-preserving decentralized applications (DApps). With fhEVM Coprocessor, developers can now build confidential smart contracts using Solidity, the standard programming language for Ethereum, without requiring extensive cryptographic expertise. This ease of use lowers the barrier to entry for creating secure and private blockchain applications.

Potential applications of this technology are vast and varied. They include the creation of private tokens, encrypted decentralized finance (DeFi) transactions, confidential on-chain lending platforms, secure voting mechanisms, private management of business records, sealed-bid auctions, and composable private identities. These use cases highlight the transformative potential of integrating FHE into blockchain ecosystems.

Earlier this year, Zama secured $73 million in a Series A funding round led by Multicoin Capital and Protocol Labs. This substantial investment shows the growing interest and confidence in Zama's mission to enhance privacy within the blockchain and artificial intelligence sectors.

The deployment of the fhEVM Coprocessor is a significant milestone in the evolution of blockchain technology. It will make advanced cryptographic protections more accessible to developers, and this will pave the way for a new era of secure and private decentralized applications. We hope to see new possibilities for innovation in the blockchain space.

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