Fhenix, a Layer 2 blockchain company focused on data secrecy, has secured $15 million in Series A financing led by Hack VC.
Layer 2 focused on data secrecy. Fhenix has completed a $15 million Series A financing under the leadership of Hack VC. Dao5, Amber Group, Primitive Ventures, GSR, Collider Ventures, and Stake Capital also participated in the fundraising.
The fundraising comes after a disclosed $7 million seed round in September 2023, totaling $22 million.
The company also announced the launch of the Helium open testnet, which uses FHE technology as its power source. To add data secrecy to its network, Fhenix has partnered with the fully homomorphic encryption (FHE) technology company Zama.
FHE technology always secures data, reducing the risk of private information hacking. This preserves privacy while enabling the use of data in smart contract systems.
Zama and Fhenix are not the first blockchain companies to collaborate on FHE technology. A different EVM-compatible data secrecy layer, Inco, declared earlier in the year that it was utilizing the same technology, and Shiba Inu also worked with Zama to improve ecosystem security and privacy.
Guy Itzhaki, the CEO and co-founder of Fhenix, told The Media that secrecy is the next logical stage in the blockchain industry’s progression after scale.
Itzhaki stated that secrecy is the next significant issue that Ethereum must overcome before becoming widely used. “FHE allows for end-to-end computation of encrypted data, which sets it apart from existing confidentiality solutions based on zero-knowledge technology. This makes it the most elegant solution to the encryption problem.”
According to Itzhaki, the company is still on track to launch its mainnet in the first quarter of 2025. The company has put in place a grand program to entice engineers to its testnet, with an amount not yet decided.