Fhenix and EigenLayer are poised to change the Ethereum ecosystem by creating Fully Homomorphic Encryption (FHE) coprocessors in a new and innovative cooperation. This cooperation is set to start a new era of general confidential computing, devoting much of the resources to improving the performance and scalability of the FHE operations within the blockchain space.
FHE coprocessors of Fhenix were created to provide speed and enhanced transaction performance for the Ethereum ecosystem. They transfer the computationally intensive tasks from the mainchain into an external processor for the Ethereum, Layer 2, or Layer 3 solutions. This invention aims to ensure data privacy while also presenting new opportunities where confidential application of AI may be required, as such computation can be done outside of the host chain to protect input data.
These specially designed circuits play a crucial role in executing the FHE-based operations while keeping the security level of the host chain in check. An application on the host chain will invoke the coprocessor over encrypted inputs for specific computations and then use the results to do on-chain activities. The accuracy of Fhenix’s computations is strengthened with the optimistic rollup architecture, where fault proofs are used to warrant data integrity.
Advertisement
Nevertheless, long settlement periods for finality in these infallible proofs are a practical challenge restricting FHE value.
The EigenLayer addresses this bottleneck in a fast-lane mode, where operators verify execution and sign that it has been performed correctly, supported by a large stake. This model imbibes accountability via a dispute window, ensuring no profit-maximizing operator acts malevolently. The crypto-economic security of EigenLayer allows the output of applications that employ an FHE coprocessor to be utilized immediately once the operators have verified the execution, contributing to an enormous acceleration in confidential on-chain computations.
The outcomes of FHE coprocessors are not limited to confidentiality-critical areas but also represent challenges to other domains, from on-chain auctions, where bidding may be urged to ensure stability and economic results, to on-chain AI, where secure computations are executed outside the host network without exposing individual data. The opportunities are almost endless, apart from identity, confidential DeFi, encrypted gaming, MEV security, and other promising ones.
Advertisement
The partnership of these two groundbreaking blockchain technologies is undoubtedly the cornerstone of a new era in blockchain. Using the FHE coprocessor, developers can now build an application that can affordably and securely handle data without compromising security. This world-changing technology creates opportunities to use previously undreamt possibilities, which would only be possible with encryption and the blockchain.
