🫤 @arbitrum on-chain privacy basically revolves around a new project: Fhenix. It truly brings "encryption" into Web3.

We all know that on-chain transactions are open and transparent, which seems very fair, but there are also many problems. For example, others can see what you have in your wallet and what transactions you have made at any time, which is very unfriendly for some scenarios that require privacy, such as DeFi position strategies, enterprise data processing, and compliance-related products, which cannot be put on-chain at all.

Fhenix uses FHE technology, which simply means "data can be computed directly while in an encryption state," without having to decrypt it first. Previously, if you wanted to use encrypted data, you had to expose it for a while, but FHE allows the entire process to be completed while in an encryption state, which is a major breakthrough for applications with high privacy requirements.

They first created an L2 based on Arbitrum Nitro, but at that time it was still a relatively closed solution. Now they have upgraded to coFHE, this "encryption co-processor"; by simply adding a line of code in the contract, it allows the input and output logic to be fully encrypted, and only the data owner can decrypt the results. For developers, there is almost no learning cost, they can directly use the familiar EVM to write.

It makes sense that Arbitrum has become their main base, after all, it has fast speeds, low fees, and mature infrastructure. Now, the demand for encryption computing is no longer just a concept, but a tangible product form. In the future, when you invest in DeFi on-chain, run a DAO, or conduct business, you can protect your data without worrying about privacy exposure. Fhenix is the first step to opening this channel.