FHE and confidential computing may unlock $1 trillion in crypto capital

Confidential computing technologies have the potential to unlock an additional $1 trillion in value for the cryptocurrency sector. Innovations in privacy technologies, such as fully homomorphic encryption (FHE), are expected to drive this growth, according to Remi Gai, the founder of Inco.

In an exclusive statement to Cointelegraph at the FHE Summit 2024, Gai highlighted:

“The next trillion dollars of opportunities are on the horizon. Our developments are set to expand what’s possible in Web3 by allowing creators to build new applications. Many Web2 use cases can’t be replicated in Web3 due to the lack of confidentiality.”

Gai’s company, Inco, is working on a modular confidential computing network that provides FHE-based solutions, aiming to establish a secure computing layer for blockchain technology.

To attract mainstream institutions, which are currently hesitant to enter the decentralized finance (DeFi) space due to transparency issues in Web3, the crypto sector needs enhanced privacy. According to Gai:

“Institutions face challenges entering the space because everything is visible. By offering an experience similar to what they’re accustomed to in Web2, we could significantly boost liquidity, broaden use cases, and encourage more substantial participation and investment.”

Gai clarified that encryption is not about creating anonymity but about safeguarding valuable information, akin to the secure sockets layer (SSL) for the internet. He noted:

“If blockchain represents the value layer of the internet, it needs an SSL equivalent. Encryption isn’t about anonymity; it’s about protecting critical information. This is an area where blockchain technology currently falls short.”

Furthermore, Gai suggested that advancements in confidential computing will attract both institutional and retail investors. He stated:

“New use cases will not only bring in institutional investors but also engage retail users, leading to increased liquidity across the board.”

The influx of new capital will largely depend on the disruptive potential of these emerging use cases facilitated by confidential computing technologies.

Source: https://cointelegraph.com/news/fhe-confidential-computing-unlock-1-trillion-crypto-capital