What is Fully Homomorphic Encryption (FHE) Partnered with SHIB by ZAMA? Explained by the CEO

ZAMA, an encryption technology company partnered with Shiba Inu (SHIB), is pioneering Fully Homomorphic Encryption (FHE) solutions. FHE allows encrypted data to be processed without decryption, ensuring unparalleled privacy.

This collaboration promises to transform the SHIB ecosystem by integrating FHE into various applications like gaming, DeFi, and ID solutions.

Explore how this groundbreaking technology is addressing privacy issues and unlocking new potentials in blockchain and beyond.

Detailed Explanation of "FHE" by ZAMA CEO

Rand Hindi, the co-founder and CEO of the encryption technology company ZAMA, which has partnered with Shiba Inu (SHIB), provided an in-depth explanation of ZAMA's technology and its applications within the SHIB ecosystem during an interview with "The Shib Daily" published on July 24, 2024.

ZAMA is an open-source encryption technology company developing Fully Homomorphic Encryption (FHE) solutions that allow data to be processed while still encrypted. The company partnered with SHIB at the end of February 2024.

In addition to developing FHE solutions for blockchain and AI, ZAMA is also working on building a highly secure new communication protocol, "httpz," expected to transform privacy issues.

This interview delves into the impact of ZAMA's FHE technology, its implications for Shiba Inu, and the future of privacy.

What is Fully Homomorphic Encryption (FHE)?

Fully Homomorphic Encryption (FHE) is a technology that allows data to be processed in its encrypted form without needing to be decrypted (*1). With FHE, only the person possessing the necessary key can view the data.

Since only individuals with the required key can access the data, even governments, hackers, and service providers cannot view the information. The primary difference from other privacy-enhancing technologies is that "the data remains encrypted during processing," meaning it is protected from external interference.

When applied to blockchain, FHE keeps the data encrypted from the moment a transaction occurs, through the smart contract manipulation, to the storage, ensuring continuous encryption.

(*1) Decryption: The process of converting encrypted data back to a readable state.

Challenges in the Cryptocurrency Industry Addressed by FHE

On default blockchains, all data, including transactions, on-chain data, and addresses, are public. This is akin to "publishing one's entire bank statement to the world."

Privacy issues are not the only challenge in the cryptocurrency industry; the public nature of all data prevents the development of certain services. Examples include "games like poker requiring secrecy, decentralized ID, MEV-Free swaps (*2), fair prediction markets, data marketplaces, and decentralized AI."

FHE addresses blockchain data privacy issues, ensuring privacy while enabling new technological applications that transparency would have otherwise hindered.

(*2) MEV (Maximal Extractable Value): An attempt by block producers such as miners and validators to maximize profits by adding, removing, or reordering transactions within a specific block, leading to various measures being taken to prevent unfair trading environments for users.

Why Did ZAMA Partner with Shiba Inu (SHIB)?

The technology of Fully Homomorphic Encryption (FHE) enables the development of new on-chain applications requiring privacy and confidentiality, further propelling Shiba Inu (SHIB) into the mainstream.

The partnership with SHIB offers ZAMA a valuable opportunity to deliver FHE technology to millions of people by collaborating with one of the most active communities in the Web3 industry.

ZAMA's CEO praises SHIB's lead developers, Shytoshi Kusama and Kaal, as "inspirational leaders with a true vision of what cryptocurrency should be."

How Will FHE Be Utilized in the SHIB Ecosystem?

ZAMA's FHE technology will be integrated into the SHIB ecosystem, both within and outside Shibarium, Shiba Inu's Ethereum L2 solution.

This integration will enable the development of new products in gaming, the metaverse, and DeFi (decentralized finance), allowing all SHIB users to utilize on-chain applications without revealing their real identity.

Leveraging ZAMA's FHE technology within Shiba Inu's platform opens new possibilities for deploying privacy-focused applications such as games, DeFi, and ID solutions.

Challenges of Integrating FHE into Existing Cryptocurrency Services

Traditional FHE required deep cryptographic expertise, making it challenging to integrate into services. However, ZAMA addresses this issue by creating "developer-friendly libraries that abstract the complexity of FHE," allowing developers to focus on their main products.

ZAMA's creation of "fhEVM" enables developers to create privacy-centric decentralized applications (dApps) directly in Solidity (*3) without requiring changes to their developer tools or cryptographic knowledge.

ZAMA's developer tools simplify FHE integration, making it accessible to a broader range of developers. Developers can write smart contracts the same way as before, benefiting from confidentiality and privacy.

(*3) Solidity: A programming language developed by Ethereum co-founder Gavin Wood for writing smart contracts executed on the blockchain.

How Will FHE Impact Individuals and Companies Broadly?

Privacy is not just about owning or protecting data; it also includes the ability to choose how and to whom one discloses information. Individuals should not sacrifice privacy, and companies and organizations should view it as added value to users and customers.

FHE can enhance data security in everyday life by protecting medical records, opening new avenues for personal financial services, improving supply chain management, and addressing privacy concerns in personalized advertising and marketing.

The ultimate goal is to encrypt the entire internet end-to-end with the new "HTTPZ" protocol powered by FHE. Once achieved, it is expected that privacy will be ensured in the design of all protocols and applications, making privacy concerns obsolete.

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