Zama Protocol

Zama Protocol is a confidential blockchain protocol that enables confidential smart contracts on any Layer 1 or Layer 2 blockchain using Fully Homomorphic Encryption (FHE). The protocol keeps onchain data encrypted at all times, including during processing, addressing the transparency limitations of traditional blockchain systems where all transactions and data are publicly visible. The protocol uses coprocessors to offload FHE computation from the base chain, maintaining low gas fees while enabling horizontal scalability and public verifiability. Developers can build confidential applications using standard Solidity contracts with euint data types to designate private contract components. Zama Protocol supports various use cases in decentralized finance including confidential token swaps, lending, yield farming, stablecoin transactions with encrypted amounts, and onchain self-custodial banking. The protocol enables confidential token launches, vesting, airdrops, governance, RWA tokenization, and sealed-bid auctions that prevent front-running. The protocol processes 20 transactions per second per chain and aims to reach 1,000 tps, with plans to achieve 10,000+ tps through dedicated FHE ASICs. The system provides programmable compliance where developers define decryption rules directly in smart contracts according to their compliance requirements. Zama Protocol is live on mainnet and offers a decentralized, verifiable, composable, and scalable solution for confidential blockchain applications.