6-minute intro to Fully Homomorphic
Encryption (FHE)

Take a deep dive into FHE, the holy grail of cryptography, and how it can solve blockchain confidentiality challenges.

What is Encryption?

Encryption has been used for thousands of years to send secret messages. One early method is the Caesar cipher from 60 BC, which swaps letters in the alphabet.


With the internet, we generate a lot of private data, leading to more data breaches and surveillance. To protect our data, we now use advanced encryption, like end-to-end encryption in everyday apps.

But how does end-to-end encryption work? And how will it change the internet?

Fully Homomorphic Encryption (FHE)

FHE enables data processing without decryption—companies provide services without accessing user data, while users experience unchanged functionality. With encryption maintained during both transit and processing, all online activities can now be truly end-to-end encrypted.

How It Works

Use cloud and blockchain services normally while your data remains completely encrypted. No company, government, or hacker can access your information—same experience, total privacy.

Demos

Try these two demos to understand how FHE works

Meet Alice and Bob

Both users have encrypted balances on the blockchain. Click "Reveal" to see their actual ETH amounts!

👩 Alice's Wallet
Encrypted Balance:
0x8f3a9c2b5e7d4f6a8c9e2b5f7d3a6c8e9f2b5d7a3c6e9f2b5d7a3c6e9f2b5d7a
Actual Balance:
???
👨 Bob's Wallet
Encrypted Balance:
0x2d5f8a3c9e7b4f6d8a3c9e7b5f8d3a6c9e7b5f8d3a6c9e7b5f8d3a6c9e7b5f8d
Actual Balance:
???

Often called the holy grail of cryptography, FHE is the endgame for bringing confidentiality to blockchain.

FHE is composable.

The composability feature of FHE allows for end-to-end confidentiality and programmable onchain privacy without sacrificing interoperability. This enables seamless integration across different blockchain protocols and applications while maintaining data protection.

FHE is Quantum-resistant.

FHE schemes built on lattice-based hardness assumptions are inherently post-quantum resilient, retaining their security even against adversaries equipped with quantum computers. This future-proof cryptographic foundation ensures long-term protection of sensitive data.

FHE is publicly verifiable.

FHE allows anyone to verify encrypted computations without seeing the underlying data. This trustless verification combines confidentiality with transparency, making it ideal for decentralized systems where auditability matters.

FHE will help onboard the next billion to blockchain

Enabling mass adoption by solving blockchain's transparency problem.

Ultimately, most transactions onchain will become confidential

All payments will become confidential.

Transaction amounts and recipient details hidden while maintaining verifiability and compliance

All wallet balances will become confidential.

Account holdings remain private, preventing wealth surveillance and targeted attacks

Financial institutions will only come to blockchain if confidentiality is guaranteed.

Traditional financial institutions require enterprise-grade privacy to meet regulatory and competitive requirements

Government infrastructure will increasingly move onchain

Citizens’ data must remain private — even while enabling public services.

Healthcare records, tax information, and identity verification without exposing personal details

Inter-agency collaboration requires confidential data sharing.

Departments can compute on shared datasets without revealing sensitive information to each other

Regulatory compliance demands auditability without transparency.

Governments need provable compliance and oversight capabilities while maintaining operational secrecy

Toward a new internet protocol

We believe FHE will enable a new internet protocol, HTTPZ, where everything is encrypted end to end. Privacy wouldn't matter anymore, not because it isn't important, but because it would be guaranteed by design in the internet itself.

1. HTTP

No encryption at all, everyone can see everything.

2. HTTPS

Data is encrypted when sent, but not while processing.

3. HTTPZ

Data is encrypted from end to end, all the time.

Learn more with our 3-minute introductions

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