Zama’s Vision: FHE for crypto privacy, and how you can join the testnet

Zama wants to make blockchain private by default

What if every DeFi transaction, DAO vote, or KYC proof could happen on-chain, fully encrypted - without compromising functionality?

That’s exactly what Zama is building with Fully Homomorphic Encryption (FHE). In June 2025, they raised $57M in a Series B led by Pantera Capital, following a massive $73M Series A backed by Multicoin Capital. Now valued over $1 billion, Zama became the world’s first FHE unicorn. FHE is a form of encryption that allows data to be processed while still encrypted. That means smart contracts can compute on private inputs - balances, orders, identities without ever exposing them.

Zama’s biggest innovation? Making FHE practical at scale for blockchain developers. No PhD in cryptography required.

Date	Round	Amount	Lead Investors
2024	Series A	$73M	Multicoin Capital, Protocol Labs
2025	Series B	$57M	Pantera Capital, Blockchange Ventures

How the Zama Protocol works

fhEVM runtime – a drop‑in EVM variant where every variable can be encrypted and computed without decryption.
Threshold decryption – users decide who can decrypt outputs (or nobody at all).
Compiler & SDK – the Concrete and Concrete ML tool‑chain converts Python or ML models into FHE byte‑code automatically.
Multi‑chain bridges – CBP starts on its own testnet, with adapters for Ethereum L2s and Solana in the roadmap.

The team confirmed a ZAMA token launch in late 2025, with mainnet deployment on Ethereum coming in Q4. The testnet is live right now.

How to join the Zama testnet

With the token confirmed and a 3-month testnet runway, now is the time to get in. Here’s a step-by-step guide to start interacting with Zama’s Confidential Blockchain Protocol:

Visit the Zama faucet and request Sepolia ETH + USDZ test tokens
If needed, grab extra Sepolia ETH from this Google faucet
Head over to the Zama testnet portal
In your portfolio, click Transfer next to USDZ or ETH, send tokens to a random or your own address
Navigate to Shield and wrap your USDZ into cUSDZ (confidential form)
Check your transaction history back in the Portfolio

Bonus activities (optional but recommended)

Zama also offers additional community-based tasks:

Join the Zama Guild
Complete missions in the Creator Program, Developer Program, or Bounty Program
Note: The portal may lag; you can revisit later as it stabilizes

Zama’s main portal also has gated sections that may unlock as the testnet progresses.

Token Timeline & Strategy

Q3 2025 — Ongoing testnet (current phase)
Q4 2025 — Launch on Ethereum mainnet
Late 2025 — Token generation event (TGE) confirmed

The testnet may serve as a multiplier or pre-requirement for mainnet rewards, so it’s smart to start building history now.

Why It Matters for Web3 Builders

Composable privacy – launch “dark‑pool” DEXs, sealed‑bid auctions or fully private stablecoins without rolling your own zk stack.
No cryptography PhD required – the Concrete compiler abstracts away key‑switching, bootstrapping and ciphertext noise.
Reg‑friendly – on‑chain AML checks can run over encrypted identity fields; auditors reveal proofs only when required.

While most of crypto is still solving L2 fees or NFTs, Zama is laser-focused on what comes after public blockchains: encrypted computation with composability.

If they succeed, we could be witnessing the start of a new privacy layer for the entire internet.