Rebirth of Privacy: A New Beginning to End-to-End Encryption

Our investment in Fhenix
by
Or Harel
September 26, 2023

In our digital age, data breaches and unwarranted data scraping pose significant threats, not just to individual privacy but to business potential and growth. Encryption isn't merely a tool to shield information; it serves as a foundation upon which businesses can thrive. By incorporating advanced encryption, businesses unlock new opportunities. These range from streamlined data sharing without compromising sensitive information, to confidently expanding into sectors with stringent data protection requirements, and even transforming DAOs, dApps, and other crypto-based projects and protocols.

As the realms of entrepreneurship and decentralized systems intertwine, encryption stands as a beacon. It not only mitigates risks but actively catalyzes opportunities, changing the way businesses, particularly startups, SMEs, and crypto-ventures, navigate the digital landscape.

In these pressing circumstances, Fully Homomorphic Encryption (FHE) steps into the spotlight as a powerful defender of our digital world. As a form of end-to-end encryption (ETEE), this innovative technology doesn't just aim to strengthen the barricades safeguarding our data; it aspires to redefine our concepts and implementation of data privacy and sovereignty. Unlike traditional ETEE that protects data in transit and at rest, FHE extends this protection to data in use, making it a superior, all-encompassing data protection method.

Fully Homomorphic Encryption enables us to perform computations on data while it remains encrypted, thus bridging the gap between utility and security. It allows us to utilize data without actually viewing it, keeping it safe from potential threats. In a world fraught with cyber threats, FHE represents a beacon of hope and the onset of a new era in data privacy.

We now stand at an exhilarating turning point in the evolution of encryption, teetering on the edge of a technological breakthrough akin to the shift from room-filling mainframe computers of the early 20th century to powerful smartphones that fit in our pockets. As we explore this frontier, we bear in mind an important lesson from history: when technology becomes feasible, it ushers in a new era of possibilities, birthing applications that were once deemed fantastical but today we take for granted. 

From video calls that make distance irrelevant to individuals across the globe, to AI models that can comprehend and generate human language, our reality today would have been indistinguishable from magic just a few decades ago. With such advancements, it's not just our gadgets that change, but our perceptions, our capabilities, and ultimately, the world itself.

Let's proceed to demystify secure encryption, shedding light on its inherent mechanisms, and underscoring the critical shift from damage control to damage prevention in this technological evolution. We're not just putting bandages on vulnerabilities anymore; we're redesigning them out of the system entirely.

If It Can't Be Broke, No Need to Fix It

For decades, encryption has played a crucial role in safeguarding our sensitive information. Traditional encryption techniques work on a simple principle – they scramble data to make it unreadable to anyone who doesn't possess the decryption key. But there's a catch. To gain insights from this data or to process it in any meaningful way, you need to decrypt it first, exposing it to potential threats.

Although traditional encryption successfully ensures data safety during transmission, it falls short when it comes to protecting data in use, i.e. computing on the data. This inherent limitation exposes our sensitive information to risks such as cyber-attacks and data breaches. 

Fully Homomorphic Encryption (FHE) offers a game-changing solution to this conundrum. It enables data processing in an encrypted state, effectively allowing us to use data without actually seeing it. This has profound implications for data privacy and cybersecurity, opening up unprecedented possibilities in diverse domains, from healthcare to finance, AI to blockchain.

Rising to the challenge is Fhenix, an innovative protocol that stands as an EVM compatible  Extension Layer, paving the way for confidential smart contracts through the power of Fully Homomorphic Encryption. With significant advancements in the field of FHE, Fhenix is steadfast in its mission to develop practical solutions that seamlessly blend into existing systems. By leveraging the power of FHE, Fhenix aims to redefine how we manage sensitive data in the blockchain ecosystem, envisioning a future where privacy and utility are not at odds, but rather, complementary aspects of a secure digital economy.

To illustrate, you can imagine a submarine (which represents our data) that needs to get from point A to point B in the most confidential way. When the submarine is underwater, representing the encrypted state of our data, it remains hidden and secure. Conversely, when it surfaces, the data becomes decrypted and more vulnerable. Technical requirements dictate that, at times, the submarine must surface, thereby exposing it to potential threats, much like data that needs to be decrypted before processing.

The drawback of current encryption technologies is akin to the limited capabilities of this submarine—every time it surfaces, or data is decrypted, there's a risk. However, with Fully Homomorphic Encryption, it's a different scenario altogether. It ensures our data, or the submarine in this analogy, doesn't need to surface at all. It can complete its mission from start to finish while submerged. In this context, if our data never surfaces, it can't be "broke", eliminating the need to "fix" or address vulnerabilities.

In the coming sections, we will delve into the specific use cases of FHE, as well as Fhenix’s distinctive role in this field, and explore the transformative potential of this revolutionary technology.

Driving the Future of AI with Privacy-Preserving Machine Learning

Artificial Intelligence has rapidly become a staple of modern life, driving everything from personalized movie recommendations to the creation of astonishing generative art, often indistinguishable from actual photographs.

But as AI's capabilities expand, so does its hunger for data. The trade-off between utility and privacy grows ever more challenging. Enter the domain of privacy-preserving AI, where FHE becomes a game-changer.
Imagine an advanced language model such as GPT. It has revolutionized natural language understanding and generation, underpinning systems that can draft emails, write code, create written content, and even generate poetry. But, it requires vast amounts of data to train and operate effectively, raising significant privacy concerns.

Several companies have recently forbidden their employees from using AI tools like ChatGPT due to these concerns over potential data leaks. This creates a dilemma: how can we leverage the immense potential of AI while preserving the privacy of the data used?

Fhenix’s groundbreaking technology in the field of FHE is setting the stage for these transformative applications, bringing us one step closer to truly privacy-preserving, utility-maximizing AI systems. Work on FHE is making it possible to leverage powerful AI tools without compromising data sovereignty, signaling the dawn of a new era in AI.

Paving the Way for Privacy-Preserving Blockchain Applications

As we've seen, FHE is poised to revolutionize the realm of AI. But its transformative potential extends far beyond. The world of blockchain and cryptocurrencies, often lauded for its security and decentralization, stands to gain significantly from the integration of FHE.

Seizing the Future of Cryptography: FHE and Blockchain

Blockchain technology, underpinning cryptocurrencies like Bitcoin and Ethereum, has taken the world by storm. At the same time, it has faced criticism and concerns over aspects of privacy and data security. Many of these concerns can be alleviated by integrating FHE into the blockchain ecosystem.

Fhenix modular design facilitates seamless integration of encrypted computation in all blockchain data layers, and easy deployment of confidential smart contracts on public blockchains.

For instance, a developer who wishes to build a dApp requiring encrypted data computation (like a decentralized email service or private voting) where data remains on-chain, can utilize Fhenix’s SDK and developer toolkit to add encryption capabilities to public dApps. With FHE at its core, Fhenix is leading the charge towards a new paradigm in blockchain technology, where privacy and utility are not trade-offs but complementary facets of a secure, decentralized digital economy.

FHE's ability to compute encrypted data holds enormous potential for a variety of applications within the blockchain space. Miner Extractable Value (MEV) extraction, a major concern in the crypto sphere, can be made fair and transparent through FHE. It enables the creation of Private Tokens and enhances the security and privacy of NFTs through encryption. It also facilitates the development of trustless gaming, Confidential DeFi transactions, and decentralized social networks, to name a few.

Trustless Gaming and Blockchain: A New Era of Fair Play

Consider the potential impact of FHE on the blockchain-based gaming world. FHE can ensure fairness, transparency, and privacy in online games - attributes previously thought to be mutually exclusive. Take an online game of poker, for example. With FHE, even the game operator can't see the players' cards as they remain encrypted throughout the game. The operator can perform necessary computations like shuffling and dealing on these encrypted values, ensuring fair play and privacy simultaneously.

The integration of FHE into blockchain gaming could introduce a level of trust and fairness previously unimaginable, making it particularly attractive for play-to-earn models where real-world value is at stake.

Empowering Private Smart Contracts

With FHE, we can also create private smart contracts on inherently public blockchains, a concept made possible through innovations like the Fully Homomorphic Ethereum Virtual Machine (fhEVM). Developers can build decentralized applications that handle sensitive personal data securely, enabling new possibilities like on-chain identity, private NFT metadata, geolocated Dapps, and much more. Fhenix is poised to redefine the boundaries of these domains with their state-of-the-art FHE solution. By making this groundbreaking technology practical and accessible, Fhenix is not only enhancing data security and privacy but is also unlocking new opportunities and applications that are yet to be conceived.

The promise of FHE in blockchain extends even further. Through advancements like fhEVM, it can drive multi-chain account abstraction, facilitate privacy-preserving AI, enable on-chain wallets, allow private transactions and sealed-bid auctions, and even empower geolocated dApps while preserving location privacy.

All these applications demonstrate the transformative potential of FHE in the crypto and blockchain world. But the beauty of it is, we're just getting started. The promise of FHE's future is not just theoretical. It is brought closer to reality by the dedicated work of Fhenix, pioneering a solution for a future where privacy and utility go hand in hand.

The Minds Behind Fhenix: Pioneering a Private Future

Fhenix is spearheaded by founder Guy Zyskind and CEO Guy Itzhaki, both renowned figures in the realms of technology and encryption. Itzhaki brings forth his robust experience in blockchain and homomorphic encryption garnered at Intel, and Zyskind contributes his extensive knowledge from his tenure of over seven years at SCRT Labs and his academic background from MIT, where he specialized in privacy-preserving blockchain technologies. We strongly believe their combined expertise provides the necessary leadership to steer Fhenix towards achieving its vision.

Fhenix's vision is backed by their strategic collaboration with Zama, an industry leader in homomorphic encryption. This partnership not only brings access to Zama's advanced encryption technology, but also the unique insights of their seasoned leadership.

Pascal Paillier, Zama's CTO, is a renowned cryptographer whose pioneering work underpins modern homomorphic encryption systems. As an advisor to Fhenix, Paillier's presence assures that the project's FHE solution is grounded in the most robust cryptographic principles.

Additionally, Fhenix can rely on the guidance of Rand Hindi, a deep tech investor and CEO at Zama, known for leading technology startups to success. His astute strategic direction promises to be invaluable to Fhenix's journey.

While the current implementations of Fully Homomorphic Encryption are not yet at the speed of traditional data processing, the progress being made is staggering. Both on the fronts of algorithmic improvements and hardware-specific developments, strides are being taken that are dramatically boosting FHE's performance. With each passing year, the computational inefficiency, once deemed an insurmountable hurdle, is becoming less of an obstacle. Furthermore, the growing emphasis on privacy in legal and societal landscapes is fueling the urgency and investment in this field. The transformative efforts of teams like Fhenix, in collaboration with cryptographic giants like Zama, are rapidly paving the way for a breakthrough.

We're approaching a pivotal turning point. As technology continues to advance at an unprecedented rate, the future where FHE is commonplace is not a distant dream, but an imminent reality. With this revolution on the horizon, we are closer than ever to a world where privacy and utility coexist harmoniously, safeguarding our digital liberty. The rebirth of privacy is within our grasp, and with it, a new era of end-to-end encryption that promises to redefine our digital world.

With such expertise driving its course, Fhenix signals a fundamental shift in how we handle, share, and compute data in the digital world. And in this shift, the possibilities extend far and wide. We're deeply proud to support Fhenix and have full confidence in their journey towards great achievements.

Curious about Fhenix's ins and outs? Read more here about Fhenix.

We value your insights. Share with us on @node_or.

This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice