In a significant push for data privacy advancements, Zama, a leading open-source cryptography company, has secured $73 million in Series A funding. The round was co-led by prominent venture capital firms Multicoin Capital and Protocol Labs, with participation from Metaplanet, Blockchange Ventures, VSquared, and Stake Capital. Notably, the round also saw participation from blockchain pioneers Juan Benet (founder of Filecoin), Anatoly Yakovenko (co-founder of Solana), and Gavin Wood (co-founder of Ethereum and co-creator of Polkadot).
This investment will be used by Zama to develop and commercialise Fully Homomorphic Encryption (FHE) technology, often referred to as the “Holy Grail” of cryptography. Zama was founded by Dr Pascal Paillier and Dr Rand Hindi, and has the largest research team in homomorphic encryption.
Company like Zama is very important these days for sure where data breach is quite a threat to almost all industry. Earlier this year, French cybersecurity startup Filigran secures €15M for open source threat management.
What is FHE and why is it significant?
Traditional encryption methods render data unreadable while stored or transmitted, requiring decryption for any processing to occur. However, FHE breaks this mould by enabling computations to be performed directly on encrypted data without ever needing decryption. This revolutionary capability unlocks a plethora of possibilities for data privacy in various sectors, including:
- Blockchain: FHE can address critical privacy concerns in blockchain technology. For example, Zama’s fhEVM solution allows smart contracts on Ethereum Virtual Machine (EVM) blockchains to operate on encrypted data, enhancing privacy for users and transactions.
- Artificial Intelligence (AI): FHE can be used to train and run AI models on sensitive data without compromising its confidentiality. This opens doors for secure collaboration in AI research and development while safeguarding sensitive information.
- Healthcare: FHE can enable secure analysis of medical data for research purposes while safeguarding patient privacy.
- Financial Services: FHE can facilitate secure financial transactions and protect sensitive financial information.
Zama’s role in FHE development
Founded in 2020, Zama has emerged as a frontrunner in FHE innovation. The company has built a comprehensive suite of open-source libraries, making this powerful technology readily accessible to developers. This fosters collaboration and accelerates the development of privacy-preserving applications across various domains.
Zama’s CEO, Rand Hindi, emphasises the company’s vision and says, “We envision a world where data privacy isn’t an afterthought, but rather guaranteed by design. With the support of our investors, our talented team, and over 3,000 developers in our community, we can make FHE and privacy synonymous and ubiquitous.”
Industry leaders back Zama’s mission
The Series A funding round reflects the faith prominent figures in the blockchain space have in Zama’s mission. Investors include Multicoin Capital, Protocol Labs, and blockchain pioneers like Juan Benet (Filecoin), Anatoly Yakovenko (Solana), and Gavin Wood (Ethereum). This strong backing underscores the potential of FHE and Zama’s role in its advancement.
How will the funds be utilised
Zama’s plans extend beyond securing funding. The company intends to utilise the investment to:
- Expand its team: By recruiting talented engineers, software developers, and cryptography researchers, Zama aims to bolster its development capabilities and accelerate FHE advancements.
- Advance open-source libraries: Continued development of the open-source libraries will ensure wider accessibility and encourage further innovation within the developer community.
- Foster strategic partnerships: Collaboration with industry leaders and other stakeholders will be crucial in exploring and bringing FHE-powered applications to life across various sectors.
Challenges and opportunities
While FHE unveils immense potential, it is essential to acknowledge the ongoing research and evolving nature of the technology. Addressing potential challenges such as computational complexity and ensuring the security of FHE implementations remain crucial aspects of its development.
However, the potential benefits of FHE are undeniable. As Zama continues to pioneer the advancement of this groundbreaking technology, we can expect significant strides in data privacy across various sectors. The journey towards a future where data privacy is not a privilege but a fundamental right is gradually taking shape, and Zama is playing a pivotal role in making it a reality.
