Zama, a leading developer in Fully Homomorphic Encryption (FHE) technology, has executed a significant strategic expansion by launching its native token and debuting a novel privacy metric. These moves follow the monumental achievement of having protocols powered by Zama’s FHE solutions successfully shield over $121 million in assets across the Ethereum ecosystem.
The launch of the token aims to decentralize the Zama network’s governance and incentivize wider adoption of encrypted computation across decentralized applications (dApps). The token is expected to serve as the primary economic layer for facilitating secure, private transactions that utilize FHE, allowing computations to be performed on encrypted data without ever revealing the underlying information.
Accompanying the token launch is the introduction of a new privacy adoption metric. This metric is designed to move beyond traditional usage statistics by quantitatively measuring the true depth and extent of privacy-enhancing technology (PET) utilization within its ecosystem. By tracking parameters such as the volume of encrypted operations and the number of genuinely shielded interactions, Zama intends to establish a new industry standard for measuring real-world privacy protection.
The substantial milestone of shielding over $121 million highlights the rapidly increasing demand for FHE within decentralized finance (DeFi). This achievement demonstrates that FHE, often considered computationally expensive, is becoming scalable and practical for mainstream blockchain use cases, particularly where confidentiality—such as in trading strategies, loan eligibility, and user balances—is critical.
Zama’s dual announcements reinforce its commitment to making confidential computation a foundational element of Web3, providing both the economic incentives and the accountability metrics necessary for sustained growth in decentralized privacy.
Source: Zama launches token, debuts privacy metric after more than $121 million shielded on Ethereum
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