tl;dr
Zama, an open-source cryptography startup founded in 2020, has raised $57 million in Series B funding, reaching a valuation over $1 billion and becoming the first advanced encryption company to achieve unicorn status. Zama aims to bring privacy to public blockchains without sacrificing transparency ...
Zama, an open-source cryptography startup founded in 2020, has raised $57 million in its Series B funding round, pushing its valuation beyond $1 billion and crowning it the first advanced encryption company to attain unicorn status. This milestone coincides with Zama's public testnet launch and the rollout of its confidential blockchain protocol, designed to enable encrypted smart contracts and private on-chain payments initially on Ethereum, with plans to expand to other EVM-compatible blockchains and a projected 2026 integration with Solana.
At the heart of Zama’s technology lies fully homomorphic encryption (FHE), which permits encrypted data processing without decryption. This innovation offers a unique balance: maintaining transparency and auditability on public blockchains while ensuring transaction content remains confidential. Unlike conventional privacy tools that obscure the transaction trail, Zama’s protocol hides sensitive data but keeps transaction paths visible. This ensures traceability and regulatory compliance, with "programmable confidentiality" features letting developers define who can decrypt specific data within smart contracts.
Zama’s initial focus targets financial applications such as payments and stablecoins, addressing a growing demand for confidentiality in on-chain transactions. The company plans to launch on Ethereum first—given its prominence in issuing stablecoins—then expand to similar blockchain environments quickly. The timeline for Solana integration is set for 2026, after adapting and auditing the technology to match Solana’s high-performance expectations.
CEO Rand Hindi emphasizes that Zama’s approach transcends previous blockchain challenges of performance and privacy, unlocking the potential for scalable financial services on public chains. Unlike controversial privacy mechanisms such as coin mixers, Zama’s solution allows public verification without revealing sensitive transaction data, supporting both compliance and user privacy. Hindi regards the achievement of unicorn status as a significant validation after years of dedication to advancing cryptographic confidentiality in the blockchain sphere.