MT Capital Research Report: Privasea Bringing Fully Homomorphic Encryption to Mass Adoption
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MT Capital Research Report: Privasea Bringing Fully Homomorphic Encryption to Mass Adoption
Privasea uses FHE technology to provide data privacy and security, leveraging AI and a distributed network architecture to enable complex data processing and analysis while keeping data fully encrypted.
Navigating Web3 tides with focused insightsAuthor: Xinwei, MT Capital
MT Capital has consistently focused on investing in innovative companies with disruptive technological potential. We believe that the convergence of Fully Homomorphic Encryption (FHE) with AI-powered Decentralized Physical Infrastructure Networks (DePIN) represents a critical future trajectory. FHE enables computation on encrypted data, ensuring privacy and security throughout the entire data processing lifecycle. The integration of AI and DePIN not only efficiently leverages external computing resources but also allows complex data analytics and machine learning tasks to be performed without concerns about data leakage. Privasea’s leadership position and technological advantages in this domain align closely with MT Capital’s investment strategy. We are confident that supporting Privasea will drive the development of the FHE AI DePIN sector and contribute to the secure and sustainable growth of the global digital economy.
1. What is Fully Homomorphic Encryption (FHE)?
Fully Homomorphic Encryption (FHE) is an advanced cryptographic technique that allows arithmetic or logical operations to be performed directly on ciphertext while preserving the encrypted state of the data. This means complex computations can be carried out on encrypted data without ever decrypting it into plaintext—an innovation that revolutionizes data privacy and security.
In traditional data processing scenarios, data must first be decrypted before any computation, exposing sensitive information and increasing the risk of theft or misuse. FHE fundamentally changes this paradigm. With FHE, encrypted data can be directly input into computational processes, and the output remains encrypted until decryption is required. This capability is especially valuable for industries handling sensitive data, such as finance, healthcare, and government sectors.
Moreover, FHE enables secure outsourcing of data processing without compromising confidentiality. Enterprises can send encrypted datasets to third-party service providers for complex analytics or machine learning tasks, without fear of data exposure—since the provider never accesses the raw data during processing.
2. Privasea: The First AI+DePIN Network Using FHE
Privasea leverages FHE technology to deliver robust data privacy and security, combining AI with a distributed network architecture to enable sophisticated data processing and analysis—all while keeping data fully encrypted. This allows users to perform machine learning and other advanced computations without revealing raw data, something impossible in traditional cloud computing environments, thus redefining privacy-preserving computation.
The Privasea platform integrates cutting-edge FHE schemes such as TFHE and CKKS, which offer strong data privacy while maintaining computational accuracy and efficiency. Specifically, TFHE supports rapid bit-level operations within a single instruction cycle, while CKKS optimizes floating-point number computations. These capabilities allow Privasea to effectively support diverse scientific and commercial applications, including financial modeling, medical data analysis, and machine learning workloads.
Additionally, Privasea has developed a highly scalable decentralized computing network called Privanetix. Composed of multiple computing nodes, each capable of performing FHE operations, this network provides substantial computational power. The distributed architecture enhances processing capacity, improves redundancy, and increases fault tolerance—ensuring high availability and reliability. By integrating AI with distributed computing, Privasea can handle demanding AI tasks such as deep learning, pattern recognition, and machine learning, which require both immense computational resources and stringent data protection. For example, healthcare providers can securely analyze sensitive patient data to predict diseases and optimize treatment plans, all while complying with strict data privacy regulations.
Privasea also offers a unique suite of smart contracts that enable users to manage and automate data processing workflows—including data validation, result retrieval, task allocation, and reward distribution—while keeping data encrypted. These smart contracts execute on a distributed ledger, ensuring transparency and traceability, while automatically distributing incentives based on the computational resources contributed by network nodes. This blockchain-based incentive mechanism further boosts network participation and computational efficiency, as nodes are motivated to provide reliable services. As a result, Privasea is more than just a data encryption and processing platform—it is a complete encrypted data ecosystem.
Through Privasea’s API, developers can seamlessly integrate into this sophisticated system and leverage its powerful features to build and deploy their own AI applications. These applications benefit from distributed computation to offload processing demands, while guaranteeing data integrity and security—particularly crucial for blockchain applications requiring extensive handling of sensitive data.
3. Collaboration with Solana Highlights Mass Adoption Potential
Leveraging FHE technology, Privasea has pioneered the ImHuman application—a groundbreaking demonstration of FHE’s utility in combating Sybil attacks and a strong indicator of its mass adoption potential in the crypto space. Sybil attacks pose a major threat to decentralized networks, particularly in airdrop distributions, where attackers create numerous fake identities to manipulate systems or gain unfair advantages. ImHuman addresses this issue with a secure and privacy-preserving solution.
Privasea plans to deploy its technology on the Solana network, becoming the first Proof of Human application on Solana. Solana’s high performance and low latency make it an ideal blockchain platform to support Privasea’s FHE and AI computational requirements. This integration will not only enhance the security of the Solana ecosystem but also showcase the real-world applicability of FHE in Web3 use cases. Running on Solana, ImHuman will broadly verify user identities, ensuring network reliability and security while safeguarding user privacy.
ImHuman works by using biometric data to generate a unique digital identity. Users begin by scanning their facial vectors via the app’s front-facing camera—a process entirely confined to the user’s device, ensuring no sensitive data leaves the local environment. The collected data is then encrypted and transformed into an NFT representing the user’s encrypted biometric vector. This process harnesses FHE’s ability to perform complex computations on encrypted data without decryption, preserving both security and privacy.
During identity verification, ImHuman scans the user’s face again and compares the new biometric input with the encrypted data stored on the blockchain. This comparison is conducted using FHE, ensuring that no decryption occurs during verification—effectively eliminating data leakage risks. Furthermore, since each user’s NFT is derived from unique biometric traits, it is extremely difficult to replicate or forge, significantly raising the barrier for executing Sybil attacks.
With the ImHuman application, Privasea delivers a powerful tool to strengthen the security of decentralized networks while demonstrating the practical viability of FHE in real-world applications. This biometric- and FHE-based authentication method offers a secure, privacy-preserving solution for decentralized systems, positioning ImHuman as the first FHE-based application with genuine mass adoption potential. Additionally, by offering airdrop rewards to participants, ImHuman incentivizes user engagement and sustained usage, further accelerating widespread adoption. This innovative approach introduces a novel defense strategy against Sybil attacks.
4. Comparison Between Privasea and Existing Proof of Human Solutions
Current Proof of Human solutions like Worldcoin and Human Protocol face significant compliance and privacy challenges. For instance, Hong Kong’s Office of the Privacy Commissioner recently concluded an investigation into Worldcoin, finding that its operations in Hong Kong violated the Personal Data (Privacy) Ordinance. The investigation revealed that participants were required to submit facial and iris images via iris scanning to verify human identity—a practice posing serious personal data privacy risks. Consequently, the Privacy Commissioner ordered Worldcoin to cease collecting iris and facial images from Hong Kong residents.
Human Protocol verifies users by collecting task responses, interaction patterns, device and browser fingerprints, geolocation, and behavioral data. Although this data is anonymized and encrypted in transit, it still involves extensive personal data collection, posing inherent privacy and regulatory risks.
In contrast, Privasea places greater emphasis on user privacy. Its DApp “ImHuman” uses FHE for identity verification without collecting sensitive biometric data such as facial or iris images. The entire verification process occurs locally on the user’s mobile device, with facial vector data encrypted and never transmitted to any server. Thus, Privasea ensures verification security while maximizing user privacy and eliminating data breach risks.
Beyond superior privacy protection, Privasea combines FHE, DePIN, and ZK technologies to deliver a powerful data privacy and security framework. These technologies enable complex data processing and analysis without exposing user data, significantly reducing compliance risks. This unparalleled combination of privacy and security positions Privasea as a leading Proof of Human solution in the industry.
5. Accseal and Privasea Join Forces to Advance Privacy Computing
Privasea has set a new benchmark in privacy computing through its exceptional expertise in FHE, DePIN, and zero-knowledge (ZK) technologies. As a pioneer in the AI DePIN space, Privasea seamlessly integrates distributed computing networks with advanced security measures via its innovative FHE Machine Learning (FHEML) solution, establishing new standards for data privacy and security. The introduction of its DApp “ImHuman” leverages FHE to securely implement “Proof of Humanity” (PoH), encrypting facial vector data directly on users’ mobile devices without transmitting it over servers—greatly enhancing privacy and data security.
In this context, Privasea has formed a strategic partnership with Accseal to further strengthen its technological edge. Accseal, a leader in hardware acceleration for privacy computing, will provide hardware acceleration support to boost the efficiency and performance of Privasea’s FHE operations. The two parties will jointly explore the integration of ZK and FHE technologies to improve the efficiency of privacy-preserving computation and expand its application scope.
This collaboration not only reinforces Privasea’s leadership in FHE but also elevates its DePIN initiative to new heights. Accseal will develop new hardware acceleration products to support upper-layer applications like Privasea, further advancing the field of privacy computing. Their joint efforts signal upcoming breakthroughs in privacy computing, particularly enabling broader and deeper applications within DePIN projects.
MT Capital
MT Capital is a global investment firm managed by a team of seasoned investors, focusing on innovative Web3 projects worldwide, with a presence in the U.S., Hong Kong, Dubai, and Singapore. Our core investment areas include: 1) Mass Adoption—decentralized social platforms, gaming, applications, and DePIN, which are key drivers for mainstream Web3 adoption; 2) Crypto-Native Infrastructure—we invest in public blockchains, protocols, and foundational infrastructure that strengthen the ecosystem, as well as native DeFi solutions. Additionally, our team brings years of professional experience in secondary market trading.
Website: https://mt.capital/
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