Nikolas Sargeant
Fhenix, the first Ethereum L2 platform powered by fully homomorphic encryption (FHE), has partnered with EigenLayer to develop FHE-based coprocessors. The two entities will dedicate significant resources and incorporate the build into their technical roadmaps this year.
In a press release shared with Cryptowisser, Fhenix explained that FHE coprocessors are secured by its optimistic FHE rollup infrastructure and EigenLayer’s restaking mechanism.
The coprocessors are designed to delegate computational tasks that require handling sensitive (i.e., encrypted) data, away from a host chain to a designated processor. It improves the efficiency of FHE-based operations while maintaining the same level of security. Thus, it unlocks the ability to compute over encrypted data at performance levels previously considered impossible.
While commenting on this partnership, Fhenix CEO, Guy Itzhaki, said,
“FHE coprocessors represent a significant leap forward when it comes to scaling on-chain FHE. Once considered impossible, FHE coprocessors solve the challenge of analyzing large data sets on Ethereum without compromising on-chain performance. It basically provides a more efficient way to process encrypted data without revealing its contents. With sensitive data not at risk of being exposed, developers are free to create powerful applications for industries ranging from fintech to gaming.”
What do Corprocessors do?
Coprocessors serve as companion processors designed to offload specific computational tasks from a host chain, be it Ethereum, an L2, or an L3, to a designated processor living outside the scope of the host.
For instance, ZK coprocessors are the industry’s number one way of scaling ZK rollup computations off-chain. However, FHE coprocessors focus on computing over encrypted data (without decrypting), which opens up new applications that would otherwise not be possible.
How Does FHE Coprocessor Work?
FHE coprocessors are powered by lightweight rollups and they get inputs directly from the host chain (or from a user calling the coprocessor directly) rather than storing a state by themselves. T
This architecture makes the coprocessor a more lightweight feature that can remain idle until it is needed to perform specific tasks. Furthermore, the coprocessors are stateless, which enables them to optimize the performance of these computations by using levelled FHE schemes.
Fhenix Founder, Guy Zyskind further commented that
“Blockchains need more sophisticated cryptography (FHE) to allow applications to utilize sensitive data, and thanks to FHE coprocessors, what was once deemed impossible is now not only feasible but also extremely scalable. Confidential computing will grow at scale, and the ability to provide immediate confirmations would not be otherwise possible without our joint efforts with EigenLayer.”
In addition to this, FHE rollups rely on fraud proofs to boost efficiency. The proofs are settled on the host chain directly, which ensures both the host chain and coprocessor share security.
Faster Transactions with EigenLayer
EigenLayer makes it possible for any AVS to adopt security for objectively attributable faults from Ethereum. The FHE coprocessor leverages a restaked rollup paradigm to get a cryptoeconomic guarantee on the correctness of the execution made by the FHE rollup.
Afterwards, the EigenLayer operators certify the correctness of the execution done by the FHE rollup. If there is any foul play on the part of the operators, then the stake of these operators is slashed. This cryptoeconomic guarantee removes the necessity for waiting until the end of the fraud-proof period (typically seven days).
What the Partnership Means for FHE Coprocessors
With the dispute period no longer an issue, Fhenix’s FHE coprocessors can provide immediate confirmation for fraud proofs and compute at performance levels previously considered impossible.
While commenting on the partnership, EigenLayer Founder, Sreeram Kannan said:
“It’s exciting to see the use cases for EigenLayer’s expansion through Fhenix’s integration of FHE-based coprocessors. As the multi-chain ecosystem grows, the need for on-chain data that is verifiable and confidential is more important than ever. With EigenLayer operators providing the necessary fraud proofs, developers that utilize Fhenix are free to build powerful applications on a bedrock of secure and computationally efficient data.”
The FHE coprocessors have a vast application spectrum and could be used in areas where confidentiality is important. FHE coprocessors are crucial in on-chain sealed-bid auctions as they ensure that bids remain confidential until the auction concludes, ensuring fairness and integrity
Furthermore, in private AI scenarios, sensitive data such as personal financial information, can be analyzed without exposing them. FHE coprocessors have applications in other areas including cross-chain smart wallets and several others.
Fhenix is the first FHE-powered L2 to bring on-chain confidentiality to Ethereum. Fully Homomorphic Encryption, or FHE, is a novel cryptographic scheme that enables direct computation over encrypted data without ever revealing the underlying data. Fhenix extends Ethereum’s capabilities with the goal of advancing application development and bringing true data confidentiality to smart contracts, transactions, and on-chain assets for the first time.
Meanwhile, EigenLayer is a protocol built on Ethereum that introduces restaking, a new primitive in cryptoeconomic security. Restaking enables staked ETH to be used as cryptoeconomic security for protocols other than Ethereum, in exchange for protocol fees and rewards.
