The Application and Development Prospects of Fully Homomorphic Encryption Technology in the Blockchain Field

Cryptographic technology has played an important role in the advancement of human civilization, especially in the fields of information security and privacy protection. The integration of asymmetric encryption and hash functions has driven the birth of Bitcoin, ushering in a new era of Blockchain.

With the development of Blockchain, cutting-edge cryptographic technologies such as zero-knowledge proofs, multi-party computation, and fully homomorphic encryption continue to emerge. Fully homomorphic encryption ( FHE ), regarded as the "Holy Grail" of cryptography, allows arbitrary computations on encrypted data without decryption, bringing new possibilities to various fields.

The core feature of FHE is that it allows computation and operations on ciphertext, which can be directly mapped to plaintext. Companies like Microsoft and Zama provide open-source FHE libraries, promoting the development and application of the technology.

In the blockchain field, Zama's fhEVM provides FHE support for Ethereum smart contracts. The Fhenix project combines fhEVM with Rollup technology and proposes the FHE-Rollups solution.

FHE technology shows great potential in areas such as Blockchain games, DeFi, and AI. It can protect financial transactions and player privacy in games, reduce MEV attacks in DeFi, and safeguard personal data in AI model training.

In addition to Zama and Fhenix, several projects such as Sunscreen, Mind Network, and PADO Labs are also making efforts in the FHE field. Non-profit organizations like FHE.org and FHE Onchain provide support for academic research and education.

With the maturity of technology and the improvement of the ecosystem, FHE is expected to bring revolutionary changes in the Blockchain field, opening up new possibilities for data privacy and secure computing.