"Privacy is necessary for an open society in the electronic age."
Running a fully-fledged community onchain requires strong confidentiality to preserve democracy. This is why Fully Homomorphic Encryption (FHE) has the power to play a crucial role in the development of network states, and ultimately any government infrastructure running on the blockchain.
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Zama Concrete ML enables the handling of sensitive data in a secure manner, so data scientists can leverage the power of Machine Learning for new use cases where the data needs to be protected.
A network state is a digitally-native community built on shared values, goals, and interests, where members organize, interact, and govern themselves primarily through decentralized technologies.
Unlike traditional states tied to physical geography, network states rely on blockchain and other Web3 technologies to establish a digital "nation state" with decentralized governance, transparent decision-making, and verifiable interactions.
These communities can form virtual economies, create enforceable agreements, and even integrate into real-world operations, blending digital and tangible systems to create new kinds of sovereignty.
Confidentiality is essential for network states because protecting sensitive personal and organizational data fosters trust among community members.
Without confidentiality, private information such as member identities, voting patterns, or financial transactions could be exposed, risking the security and autonomy of the community.
For a network state to function effectively, its members need to trust that their data will remain private while still enabling transparency for governance and accountability.
Confidentiality ensures that decisions are made freely, relationships are safeguarded, and members are empowered to participate fully without fear of surveillance or exploitation.
Fully Homomorphic Encryption (FHE) is a groundbreaking technology that allows data to remain encrypted while being processed, enabling computations on encrypted data without ever exposing the plaintext.
This capability makes FHE an ideal solution for network states allowing them to embed confidentiality directly into the infrastructure. With FHE, network states can ensure that voting, governance, and financial operations remain secure and private, even when running entirely onchain.
By combining the decentralization of blockchain with the privacy guarantees of FHE, network states can build systems that operate without requiring inherent trust, achieving both transparency and confidentiality—crucial for scaling governance, protecting member data, and achieving true digital sovereignty.
Discover the essential components of a network state and how Fully Homomorphic Encryption can help ensure privacy and trust at every layer.Democracy and Governance
Confidential Voting System
A secure and private platform for state-level voting and decision-making.
Budget Management
A democratic voting system for approving and managing finances.
Debt Issuance System
A transparent yet confidential system for managing bond and debt issuance.
Decentralized Identity System
A secure digital passport system with encrypted personal data.
Property Notarization System
A reliable platform for authenticating real estate ownership.
Business Registration System
A streamlined solution for registering businesses with state-issued identification.
Vehicle Registration System
A secure and efficient system for registering vehicle ownership.
Sovereign Digital Currency
A state-issued digital currency for both domestic and international use.
Tax Collection System
A comprehensive platform for income and corporate tax collection.
Confidential Cap Table Management
A private ERC-20-based system for managing company equity.
Ease of use for data-scientists Use familiar APIs from scikit-learn
and PyTorch to automatically convert machine learning models into their FHE equivalent.
A variation of the standard ERC-20 smart contract incorporates encrypted balances, providing additional privacy for token holders.
contract EncryptedERC20{
// ...
function transfer(address to, einput encryptedAmount, bytes calldata inputProof) public {
ebool canTransfer = TFHE.le(amount, _balances[msg.sender]); // Ensure owner has enough tokens
euint64 transferValue = TFHE.select(isTransferable, amount, TFHE.asEuint64(0));
euint64 newBalanceTo = TFHE.add(_balances[to], transferValue); // Add to the balance of `to`
_balances[to] = newBalanceTo;
TFHE.allowThis(newBalanceTo);
TFHE.allow(newBalanceTo, to);
euint64 newBalanceFrom = TFHE.sub(_balances[from], transferValue); // Subtract to the balance of `for`
_balances[from] = newBalanceFrom;
TFHE.allowThis(newBalanceFrom);
TFHE.allow(newBalanceFrom, from);
}
}
# Example for Tree-based Models
from concrete.ml.sklearn import XGBClassifier
model = XGBClassifier(n_bits=8)
model.fit(X_train, y_train)
model.predict(X_test)
model.compile(X_train)
model.predict(Xtest, fhe="simulate")
model.predict(X_test, fhe="execute")
# Example for Linear Models
from concrete.ml.sklearn import LogisticRegression
model = LogisticRegression(n_bits=12)
model.fit(X_train, y_train)
model.predict(X_test)
model.compile(X_train)
model.predict(X_test, fhe="simulate")
model.predict(X_test, fhe="execute")
DAO smart contract that faciliates governance deicsions through encrypted voting.
A blockchain-based identity management system using smart contracts to store and manage encrypted personal data.
contract DID is Ownable {
struct Identity {
euint128 id; // Encrypted unique ID
ebytes64 name; // Encrypted name
euint64 birthdate; // Encrypted birthdate for age verification
}
mapping(address user => Identity) private citizenIdentities;
// ...
/// @dev Owner is able to add new identity for a specific user addres
function registerIdentity(
address user, einput name_, einput birthdate_, bytes calldata inputProof
) public onlyOwner {
euint64 newId = TFHE.randEuint128(); // Generate a new encrypted random unique ID
citizenIdentities[user] = Identity({
id: newId,
name: TFHE.asEbytes64(name_, inputProof),
birthdate: TFHE.asEuint64(birthdate_, inputProof)
});
/// @dev Allow the user to access their own data
TFHE.allow(citizenIdentities[user].id, addressToBeAllowed);
TFHE.allow(citizenIdentities[user].name, addressToBeAllowed);
TFHE.allow(citizenIdentities[user].birthdate, addressToBeAllowed);
/// @dev Allow the contract to access the data
TFHE.allowThis(citizenIdentities[user].id);
TFHE.allowThis(citizenIdentities[user].name);
TFHE.allowThis(citizenIdentities[user].birthdate);
}
/// @dev Grants claim contract access to encrypted birth date
function generateAgeClaim(address claimAddress, string memory claimFn) public {
TFHE.allowTransient(citizenIdentities[msg.sender].birthdate, claimAddress);
(bool success, bytes memory data) = claimAddress.call(abi.encodeWithSignature(claimFn, msg.sender));
if (!success) revert ClaimGenerationFailed(data);
}
function getBirthdate(address user) public view returns (euint64) {
return citizenIdentities[user].birthdate;
}
}
contract EmployerClaim {
mapping(address user => ebool isAdult) private adultClaims;
// ...
/// @dev Generates an encrypted claim verifying if a user is above 18 years old
function generateAdultClaim(address user) public {
if (msg.sender != address(didContract)) revert NotAuthorized();
euint64 birthdate = didContract.getBirthdate(user); // Retrieve user's encrypted birthdate from the DID contract
ebool isAdult = TFHE.le(birthdate, _AGE_THRESHOLD); // Check if user is adult
adultClaims[user] = isAdult; // Store claim result
TFHE.allowThis(isAdult);
TFHE.allow(isAdult, user);
}
}