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Feb 19 11 tweets 2 min read Read on X
1/11 On-chain FHE Made Practical - Exploring Fhenix's Threshold Service Network (TSN)

In this thread we will discuss:
- why FHE is ideal for confidential computing
- what is threshold FHE
- how TSN makes FHE practical in a distributed environment

Let's find out 👇 Image
2/11 Background

Blockchain, by design, requires network participants to reach a consensus on the evolving state (e.g. your token balance) of the system.

This intrinsic trait significantly complicates the quest for on-chain data confidentiality.
3/11 Limitations of ZKP

ZKP achieves on-chain confidentiality by having users generate proofs of correct state transition off-chain.

However, this method often necessitates intermediaries for shared state management, which compromises user data confidentiality.
4/11 FHE

FHE allows users to interact with confidential dApps without leaking information to intermediaries.

FHE achieves truly end-to-end encrypted on-chain interaction by encrypting user inputs using the network's public key and doing computation over the encrypted data.
5/11 Threshold FHE

In a decentralized setting like blockchain, it's imperative that no single entity can decrypt the encrypted state.

Thus, we need a network of operators to collectively manage the FHE secret key and perform necessary decryptions in the network.
6/11 Threshold Service Network

TSN is separate from L1 or other rollup components. It runs a secret-sharing protocol effectively splitting the network's secret key into many shares.

The network needs a threshold number of operators to reconstruct the secret key collectively.
7/11 Threshold decryption and re-encryption

The threshold service network decrypts certain results periodically (e.g. revealing a blind voting winner).

When a user accesses encrypted on-chain data, the TSN re-encrypts to ensure only the intended user can decipher the information.
8/11 Proofs for encrypted data

The TSN can help prove important statements about encrypted data (e.g. an input is properly encrypted).

The TSN could leverage ZKP in the future for broader proofs, such as proof of compliance. Currently, ZKP on FHE ciphertext is still expensive.
9/11 Secure Shuffle and Randomness

The TSN can also serve as a source of randomness and perform secure shuffling, both of which are important functionalities needed by many on-chain applications (e.g. on-chain gaming (poker, casino, etc.)), or NFT mints.
10/11 Security considerations

TSN is an integral part of the confidentiality for the entire system.

For effective operation, TSN is designed to withstand up to 1/3 of malicious operators for rapid and robust functionality, and up to 1/2 if opting for security with abort.
11/11 Takeaways

1. FHE is poised to revolutionize confidential computing.
2. Fhenix's TSN brings practicality to on-chain FHE and provide various important utilities.
3. The TSN has its limitations with regard to fault tolerance.

Follow @FhenixIO to learn more

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More from @FhenixIO

Jan 15
1/ #FHE’s ability to compute encrypted data will revolutionize #Web3, but faces considerable challenges.

Our latest blog piece covers 2 of these:
-Nascent FHE schemes, libraries & compilers
-Suboptimal FHE threshold decryption techniques

Below we’ll cover both in-depth
#ETH Image
2/ These challenges are being mitigated through new #FHE compilers and libraries, and rapid advancements in both threshold decryption and #MPC decryption.

These will help scale on-chain #privacy and #security across the board.
3/ Challenge 1: FHE Schemes, Libraries & Compilers

-Schemes help devs manage data but #FHE ones are ~1000x slower
-Libraries are pre-written code yet FHE libraries are lacking
-Compilers translate high-level code to low-level machine code, but FHE ones must handle complexities Image
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