Confidential DAO Voting Using Homomorphic Encryption

The blog post explores the use of homomorphic encryption to create confidential Decentralized Autonomous Organizations (DAOs) using Zama's fhEVM, focusing on transforming a traditional DAO into a confidential one. A DAO, typically governed by smart contracts such as the Governor and Token contracts, allows token holders to propose and vote on organizational decisions, but in a traditional setup, voting records and token holdings are public. A confidential DAO, however, maintains the secrecy of token quantities and individual votes by employing encrypted data types like euint32 and ebool. The post details the process of converting the COMP token contract into a confidential token contract and making necessary adjustments to the Governor contract to ensure vote confidentiality using encrypted integers. It highlights the ease of transitioning an unencrypted DAO contract to an encrypted one with fhEVM, which facilitates writing smart contracts with encrypted data and performing homomorphic computations. The article provides insights into managing historical data for token holdings, vote secrecy, and proposal thresholds in confidential DAOs, encouraging readers to explore further through documentation, community support, and a bounty program.