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Transparency is the foundation of contemporary blockchain systems. This guarantees transparency and confidence, but it also introduces a serious issue: a lack of privacy. Maintaining transaction privacy and executing smart contracts without revealing sensitive information is essential for many scenarios (finance, DeFi, corporate data, medical records, etc.).
The Confidential Blockchain Protocol (FHEVM), a cutting-edge architecture from @zama, uses fully homomorphic encryption (FHE) to enable computations without the need to decrypt data. This offers programmable privacy, maintaining privacy without compromising interoperability with current EVM infrastructure and blockchains.
Let's take a closer look on an architecture.
First is Library.
The protocol is made up of various essential parts that work together to create a secure, scalable, and decentralized system.
Developers can incorporate confidential computing into their applications with the help of the FHEVM Library, a collection of tools and smart contracts. It offers the following functions for encrypted data: API for network communication and integration with additional protocol elements.
The primary blockchain (such as Ethereum, Solana, or other EVM-compatible chains) that smart contracts are implemented on is known as the host chain. It serves as the foundational layer for storage and consensus, while FHEVM handles calculations involving sensitive information.
GATEWAY
Request routing and coordination between various protocol components are handled by the gateway, a central node. It communicates with Oracle and KMS, receives user transactions, moves them to the coprocessor for processing, and then sends the results back to the host chain.
COPROCESSOR
Encrypted calculations are carried out by the coprocessor. This specialized computing layer enables you to scale the computing load, support private smart contracts, and operate without decrypting data.
KMS
KMS offers key management for encryption. Key creation, distribution, and updating, decentralized key control, and avoiding trust centralization all depend on this.
ORACLE
Oracle serves as a bridge between external data and FHEVM. It ensures that even real-world data can be used in a confidential manner by sending the Coprocessor encrypted data from outside sources.
RELAYER
Relayer makes it easier for users to communicate with the network. Relayer receives a transaction from the user and forwards it to Gateway. This makes it possible to conceal user IP addresses, simplify things for the final user, and guarantee a smooth transaction experience for private data.
Together, Oracles and Relayers help bridge the gap between encrypted execution and application usability—without compromising security or decentralization.
New Web3 products, corporate solutions, and financial applications where privacy and trust are essential values are made possible by this architecture.
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