Introducing the fhEVM Coprocessor: Run FHE smart contracts on Ethereum, Base, and other EVM chains

Zama has developed the fhEVM, a protocol utilizing Fully Homomorphic Encryption (FHE) to enable confidential smart contracts on Ethereum Virtual Machine (EVM) chains, resolving the conflict between public verifiability and data confidentiality inherent in blockchain technology. This innovation encrypts transaction inputs and onchain states, maintaining privacy and allowing smart contracts to define decryption permissions onchain. The newly introduced fhEVM coprocessors facilitate the deployment of confidential smart contracts across any EVM chain without altering the underlying protocol, achieving a significant increase in transaction throughput over previous iterations. By employing symbolic execution and threshold decryption, the protocol enhances scalability and ensures that security is not compromised, allowing developers to build using familiar tools like Solidity without needing extensive cryptographic expertise. Potential applications of this technology span various fields, including confidential finance, governance, identity management, and more, with Zama envisioning an end-to-end encrypted blockchain ecosystem termed "HTTPZ," akin to the privacy HTTPS brought to the internet.