Fhenix, a layer-2 platform aiming to integrate fully homomorphic encryption (FHE) into smart contracts, has announced a collaboration with EigenLayer to develop FHE coprocessors. These coprocessors, similar to zero-knowledge (zk) coprocessors used for zk rollup computations, are specialized processors designed to efficiently handle specific tasks.

In this case, FHE coprocessors will focus on enabling computations on encrypted data without decryption. This ensures sensitive and complex computations are handled by a designated processor, not directly on the Ethereum blockchain or subsequent layers. This technology will unlock new use cases for the blockchain by allowing for efficient processing of encrypted data without compromising user privacy.

Fhenix CEO Guy Itzhaki emphasizes the groundbreaking nature of FHE coprocessors. "Once thought impossible," he states, "FHE coprocessors solve the challenge of analyzing large encrypted datasets on Ethereum without sacrificing on-chain performance." This technology will not only improve efficiency but also eliminate the need for a fraud-proof period, leading to faster confirmation times.

The security of these coprocessors is a joint effort between Fhenix's FHE rollup and EigenLayer's staking mechanism. EigenLayer's actively validated services (AVS) inherit pooled Ethereum security, guaranteeing the economic correctness of the rollup's execution. Any malicious operations will result in slashed validator stakes. Fhenix believes this eliminates the dispute period, further streamlining the confirmation process.

Fhenix founder Guy Zyskind highlights the scalability of FHE coprocessors, stating, "Confidential computing will grow at scale, and the ability to provide immediate confirmations would not be possible without our collaboration with EigenLayer." This partnership paves the way for a future where secure and efficient processing of encrypted data is readily available on the Ethereum blockchain.