Overview
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There used to be a dilemma in blockchain: keep your application and user data on-chain, allowing everyone to see it, or keep it privately off-chain and lose contract composability.
fhEVM is a technology that enables confidential smart contracts on the EVM using Fully Homomorphic Encryption (FHE).
Thanks to a breakthrough in FHE, Zama’s fhEVM makes it possible to run confidential smart contracts on encrypted data, guaranteeing both confidentiality and composability with:
End-to-end encryption of transactions and state: Data included in transactions is encrypted and never visible to anyone.
Composability and data availability on-chain: States are updated while remaining encrypted at all times.
No impact on existing dapps and state: Encrypted state co-exists alongside public one, and doesn't impact existing dapps.
fhEVM enables powerful privacy-preserving applications across key blockchain sectors:
Private Trading & AMMs
Execute trades without revealing amounts or strategies
Prevent front-running and MEV exploitation
Create dark pools with hidden order books
Confidential Lending
Keep collateral amounts and positions private
Protect borrowing history and credit scores
Enable private under-collateralized lending
Example: Confidential ERC20 tutorial
Decentralized Identity
Store encrypted credentials on-chain
Issue private attestations
Verify membership without revealing identity
Private Voting
Cast encrypted votes without revealing choices
Prevent voter coercion and vote buying
Enable quadratic voting with private token balances
Example: Decentralized identity
Supply Chain
Track sensitive business metrics privately
Share data selectively with partners
Maintain competitive advantages on-chain
Data Markets
Trade data while preserving confidentiality
Enable private computation services
Create subscription-based data access
Strategy Games
Hide player moves and game state
Enable private bidding and trading of in-game assets
Implement truly random number generation
NFT Privacy
Conceal ownership and transfer history
Keep metadata and attributes private
Enable sealed-bid NFT auctions
Example: FHE Wordle
These applications showcase how fhEVM uniquely combines the transparency and composability of blockchain with the privacy guarantees of FHE, enabling a new generation of confidential smart contracts.