Web3 Privacy Infrastructure Changes
blockchain Privacy company Phoenix on July 2 announced the acquisition of Sunscreen, an early developer of Fully Homomorphic Encryption (FHE) technology. web 3 application. As part of the deal, Sunscreen founder Ravital Solomon will join Phenix to lead the company’s cryptographic research operations.
The acquisition brings together the companies’ respective areas of focus in advanced cryptography, including TFHE and BFV encryption schemes, cryptographic computation, and post-quantum security. This integration comes amid widespread domestic pressure. cryptocurrency The industry will establish encrypted computation as a standard infrastructure.
As institutional capital, as tokenized real-world assets, stable coin And artificial intelligence systems are increasingly migrating. blockchain Network, security, and privacy technologies are moving from niche applications to fundamental requirements for mainstream deployment.
Since launching in 2022 with an open source FHE compiler, Sunscreen has expanded into zero-knowledge tools, threshold cryptography systems, and privacy architectures. Solomon specializes in applying lattice-based post-quantum cryptography. smart contract And the production environment.
“FHE is entering a new phase,” Phoenix founder Guy Ziskind said in a statement. “The debate is no longer about whether cryptographic computation works; it is about making encryption scalable, practical, and available across the ecosystems that developers are currently building.”
Zyskind added that the acquisition is aimed at accelerating the deployment of quantum-secure privacy layers across major blockchain networks such as Ethereum, Arbitrum, and Base.
Fhenix has extended its privacy stack through CoFHE, an encrypted compute infrastructure tailored for Ethereum Virtual Machine (EVM) applications. The company’s recent research initiatives focus on scaling threshold FHE decryption, precise arithmetic, and cryptographic computing to handle real-world blockchain workloads.
“I started Sunscreen because I believed that advanced encryption should move from being theoretical to being practical,” Solomon said. “What excited me about joining Phenix is the combination of ambitious research and a clear path to deployment.”
The Integrated Research Division will focus on developing scalable and quantum-resistant FHE systems. Phoenix officials said the combined team’s long-term goal is to build the cryptographic foundation needed to support sensitive on-chain data processing across financial services, digital payments, identity verification, and AI applications.
