What is the Zama?

Blockchain’s transparency is its Achilles’ heel. Every transaction, balance, and interaction is visible to all—validators must inspect data to confirm state. But what if privacy and public verifiability could coexist? Zama makes this revolution real: a Fully Homomorphic Encryption (FHE)-powered Confidential Blockchain Protocol. It lets you build encrypted smart contracts and dApps on any L1 or L2. Zama keeps data encrypted even during computation; coprocessors handle scaling while keeping gas costs minimal. It unlocks new possibilities—from DeFi and payments to RWA tokenization and private voting.

In this article, we’ll explore Zama’s tech, use cases, performance, and team. Ready to enter the holy grail of blockchain privacy?

What is Zama?

Zama is an open-source cryptography firm crafting cutting-edge FHE solutions for blockchain and AI. The Zama Confidential Blockchain Protocol enables confidential asset issuance, management, and trading on existing public chains. Key features:

• End-to-end encryption: Transaction inputs and state remain invisible—to everyone, including node operators.
• Composability: Confidential contracts integrate seamlessly with each other and standard ones.
• Programmable privacy: Contracts dictate who decrypts what.

It’s not a new L1/L2—it’s a cross-chain privacy layer. No bridging required; interact via your current wallets. FHE is the core: compute on encrypted data. MPC handles key management, ZK validates inputs.

How Zama Works: Technical Infrastructure

The Zama Protocol relies on symbolic execution and threshold decryption:

1. Symbolic Execution: When an FHE operation is called, the host chain generates a pointer and emits an event. Coprocessors perform the actual computation—parallel and efficient.
2. Threshold Decryption: Private keys are split via MPC. Decryption only occurs with explicit contract permission.

Components:

• Host Chains: Supported L1s/L2s.
• FHEVM Library: Write confidential contracts in Solidity.
• FHEVM Executor: Manages FHE calls.
• ACL: Tracks decryption permissions.
• $ZAMA Token: Fees, staking, governance.
• Gateway: Arbitrum rollup for verification, decryption, bridging.
• Coprocessors: FHE computation and storage.
• KMS: MPC key management (AWS Nitro Enclaves).

Zama’s Features: Secure, Scalable, Compliant

• Full Encryption: Data stays encrypted always.
• Public Verifiability: Anyone can recompute FHE operations.
• Low Costs: Offloaded via coprocessors.
• Programmable Compliance: Embed KYC/AML in contracts.
• Composability: Mix confidential and regular contracts.

Develop in Solidity: Swap integer ops for FHE equivalents, set decryption rules. JS SDK handles client-side encryption/decryption.

Zama Products: Open-Source and Enterprise Solutions

All products are open-source (dual license): Free for non-commercial; enterprise license for business use.

1. FHE Libraries: TFHE-rs, FHEVM, Concrete ML, TKMS.
2. Hosted Services: Relayer, decryption oracle.
3. Premium Support: Assistance for FHE apps.

Over 5,000 developers (70% market share). Licensed to L1s/L2s, finance, AI firms.

Zama Standard Library (audited):

• Confidential tokens/RWAs/NFTs.
• Bridge wrappers.
• DID/VC stack.
• Confidential AMM, vesting, airdrops, auctions, governance.

Zama Use Cases: From Finance to Governance

Confidential smart contracts open vast design spaces:

Finance

• Confidential Payments: Encrypted stablecoin transfers (JP Morgan PoC).
• RWA Tokenization: Institutional assets on public chains, private.
• Confidential DeFi: Encrypted swaps, lending, credit scoring—no front-running.

Tokens

• Sealed-Bid Auctions: Encrypted bids, bot-proof.
• Confidential Distributions: Encrypted airdrops, vesting, staking.

Identity & Governance

• Composable DID/VC: Encrypted identities, compliant.
• Confidential Voting: DAOs/corporates/governments—bias-free.

Others

• Onchain Companies: Encrypted cap tables, financials.
• Prediction Markets: Encrypted predictions.
• AI Data Markets: Encrypted data sales/training.

Zama enables programmable infrastructure—companies, cities, nations onchain.

Zama Performance: Faster Than Ethereum

• Now: 20 TPS/chain (CPU)—encrypts all Ethereum.
• 2026: 500-1,000 TPS (GPUs).
• ASICs: 10,000+ TPS (2027-2028).

Parallel FHE; scales with Moore’s Law.

Zama Compliance: Programmable Rules

Contracts embed compliance—KYC, blacklists. Protocol-neutral; developers choose (end-to-end or onchain encryption).

Zama Tokenomics: $ZAMA

Uses: Fees (ZKPoK, decryption, bridging), staking, governance. Model: Burn & mint—fees burned, rewards minted.

Fees (USD-based, volume discounts):

• ZKPoK: $0.005-$0.5
• Bridging: $0.01-$1
• Decryption: $0.001-$0.1

Sample transfer: $0.008-$0.8. High volume: <1 cent.

Zama Future Improvements

• 100k TPS: New algorithms, ASICs, ZK-rollup Gateway.
• KMS: ZK-MPC, larger committees.
• Permissionless Operators: HSMs, ZK-FHE.
• Post-Quantum: ZKPoK, signatures (host-chain dependent).

Zama Investors: $130M Raised, $1B Valuation

Zama, pioneering FHE for blockchain, has secured over $130 million in funding, achieving a $1 billion valuation. Backing comes from top VCs like Multicoin and Pantera, plus visionaries behind Solana and Polkadot. Investors bet on Zama’s privacy-driven future.

• Tier 1
  • Pantera Capital
  • Multicoin Capital
  • Anatoly Yakovenko (Solana Founder)
• Tier 3
  • Protocol Labs
  • Blockchange Ventures
• Tier 4
  • Stake Capital Group
  • Metaplanet
  • Vsquared Ventures
• Other Key Names
  • Juan Benet (IPFS/Filecoin Founder)
  • Gavin Wood (Ethereum/Polkadot Founder)

Zama Team: The World’s Largest FHE Research Force

Zama operates globally with over 90 experts; nearly half hold PhDs. It boasts the biggest FHE research team worldwide. From founders to leads, everyone brings deep crypto and privacy expertise.

• Dr. Rand Hindi – CEO Entrepreneur, biohacker, Unit.vc partner; founded Snips (acquired by Sonos), PhD at 21.
• Dr. Pascal Paillier – CTO FHE pioneer, invented Paillier scheme; founded CryptoExperts, 2025 IACR Fellow.
• Prof. Nigel Smart – Chief Academic Officer Globally renowned cryptographer and standards setter.
• Dr. Marc Joye – Chief Scientist Dozens of patents in crypto research, FHE and protocol expert.

The team turns FHE from theory to practice, redefining blockchain privacy.

Official Links

• Website
• X (Twitter)
• Whitepaper

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