1/ Today marks an important milestone in our mission to bring confidentiality to Ethereum through the first L2 powered by fully homomorphic encryption (#FHE).

We're excited to announce we've raised $15M in Series A funding and released our initial testnet: Helium. 2/ Ethereum has made huge strides over the last decade, notably the move to proof of stake and the maturation of Layer 2s as an effective scaling solution.

But a glaring obstacle still remains for the world's largest smart contract platform: it has no confidentiality.

1/ Did you know there are three different types of Homomorphic Encryption?

- Partially Homomorphic Encryption
- Somewhat Homomorphic Encryption
- Fully Homomorphic Encryption

The primary difference between them is the type and number of mathematical operations they allow. 2/ Partially Homomorphic Encryption (PHE) schemes support either addition OR multiplication operations on encrypted data, but not both simultaneously.

With PHE these operations can be performed an unlimited number of times.

1/ DeFi needs Fully Homomorphic Encryption (FHE)

In this thread we'll cover:
- Challenges with a transparent DeFi ecosystem
- FHE as a solution
- Recent cryptographic developments

This is an emerging area worth watching. 2/ DeFi has enormous potential, including asset tokenization, derivatives, payments, and much more.

Yet, there are 3 primary challenges:
1) Privacy
2) MEV Extraction
3) Regulatory Challenges

These limit use cases & adoption.

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 👇 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.

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 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.