Today we begin a series on privacy. Privacy is important. That’s important. We don’t always say so, but it’s a fundamental right. And when dealing with others, it’s important to have at least some privacy. So let’s take a look at the different forms of privacy offered by encryption projects.
Let’s look at the first of the four most common privacy types: FHE. FHE stands for Fully Homomorphic Encryption.
What is FHE?
Why do we need FHE if the cipher is already encrypted? Good question. The cryptographic or crypto part of a cryptocurrency means that the token is already encrypted. And we also know that doesn’t mean it’s actually private. Someone who really wants to can find out your fake wallet address.
So FHE is like super-encryption. Regular encryption locks your data. That part is good. However, it also means that you can’t do anything until you unlock it. So if you need to transfer funds or anything, you need to unlock it first. And that’s when you expose your tokens to malicious parties. Exactly when you don’t want me by your side.
For example, if you want to process your data in a DeFi app so that you can earn income in USDC, you need to unlock it first. That’s the difficult part.
FHE is an exception to this basic cryptographic rule. FHE allows you to do as many calculations and data manipulations as you like without leaking or exposing your data to others. Consider the impact this has on fields such as healthcare and finance. Doctors don’t have to share your files with everyone to see what they need to see to diagnose your condition. Or you can check how the drug protocols for treatment are working. Isn’t that amazing?
What is @Zama Huh?
Zama FHE stands for Fully Homomorphic Encryption, a special type of encryption that keeps your data locked even when it is in use.
Typically, before you can use the data, you must first decrypt it, which exposes it to the public.
However, FHE allows you to perform calculations and execute smart contracts. pic.twitter.com/oVI5TSDYsb
— 𝗧𝗮𝗺𝗶𝗺 (@MdTamim470123) November 2, 2025
Isn’t that what we want from our data? Others in the hospital can only see encrypted data that they can’t access or share, but doctors can use it only when they need it. or as a researcher in a medical study without disclosing that you are participating in a medical study.
What makes FHE better than other types of privacy?
Regular encryption is effective in preventing data leakage. Tools like VPNs that anonymize your data can hide your data while it’s in transit. However, neither protects your data when you need to process it, such as when you use it to perform calculations. But FHE does. You can perform as many calculations as you want without exposing your data. That’s amazing.
What projects use FHE?
So who uses FHE? There aren’t that many projects at the moment. Technically, FHE is difficult to implement. Mr. Zama is one of the leaders, along with Mr. Alcium, working to bring privacy to Mr. Solana.
Seeker’s phone <暗号化> Now you can.
Featuring a custom Seeker phone case @SOLYD_STORE pic.twitter.com/S2zeaQe7Xy
— Arcium ☂️ (@Arcium) November 2, 2025
Honestly, despite how great this technology is, there’s very little. There is concern among privacy protocols that if the government is “too strict” in enforcing privacy on projects that expose them to criminal activity, they will lose funding. This is why some of the smaller forms of privacy are more effective. It’s more flexible, such as when you have the option to turn privacy on or off. Therefore, it has performed well both in the regulatory environment and in financing.
Phenix, Inco, Privasea, and several other small companies are looking to use FHE to build full-scale projects.
Finally, remember that we are here because your privacy is important. But we’re also here to make money. According to CoinGecko, the privacy sector is up 66% in the past seven days.
As you can see, this is No. 1 among all sectors in what has been a tough week for the market. ZCash, Dash, and Railgun led the way, all up more than 100% in the last week. And privacy may continue to be maintained. All it needs is a reminder of why it’s important. People are starting to remember.
Next, in Part 2, we will consider another, but common form of privacy in cryptocurrencies. Please stay tuned for more on that.
Disclaimer
The information provided by Altcoin Buzz does not constitute financial advice. It is for educational, entertainment, and informational purposes only. All opinions and strategies shared are those of the writer/reviewer, and their risk tolerance may differ from yours. We do not accept any responsibility for any losses you may incur as a result of investments related to the information provided. Bitcoin and other cryptocurrencies are high-risk assets. Therefore, please conduct thorough due diligence. Copyright Altcoin Buzz Pte Ltd.
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