Zama Achieves 1,000 Confidential Transfers Per Second on Fully Homomorphic Encryption

Zama, a privacy technology firm specializing in fully homomorphic encryption (FHE), has announced a significant performance milestone for on-chain data privacy. The company reported a self-benchmarked throughput of 1,000 confidential transfers per second on graphical processing units (GPUs). This achievement marks a critical step toward deploying encrypted token transfers on high-performance public blockchains .

The reported figure represents a 5,000-fold improvement from Zama’s initial FHE smart contract demonstration at ETHcc in 2022, which operated at merely 0.2 transactions per second . CEO Rand Hindi emphasized that reaching the 1,000 transactions per second threshold is essential for launching on high-throughput chains beyond Ethereum . Such networks require near-zero gas fees and low latency to accommodate mainstream user activity .

Zama aims to activate this performance benchmark on its mainnet by the end of 2026 . The company projects that running an FHE node currently costs approximately $0.000004 per ERC7984 transaction . Hindi characterizes this cost as orders of magnitude cheaper than zero-knowledge proof systems, although he acknowledged that this comparison is self-reported and has not been independently verified by third parties .

Why does this throughput improvement matter for blockchain privacy?

Fully homomorphic encryption allows computations to be performed on encrypted data without ever decrypting it . This capability enables confidential token transfers on public blockchains while preserving transactional privacy . By masking data at the cryptographic layer, Zama’s technology addresses the transparency inherent in standard blockchain ledgers . The new throughput metrics suggest that FHE can scale to meet the demands of active decentralized finance ecosystems .

The Confidential Token Association, co-founded by Zama, is working to standardize encrypted ERC-20 tokens . Recent developments include the launch of a confidential request-for-quote swap product on July 24 and a strategic partnership with blockchain analytics firm Elliptic . These initiatives aim to integrate compliance screening directly into privacy-preserving transactions . Zama has also shielded over 121 million USDT on Ethereum in recent weeks, demonstrating early adoption of its encryption infrastructure .

What are the performance targets and funding backing this technology?

Zama has set aspirational performance targets of 10,000 transactions per second by 2028 and 100,000 transactions per second by 2030 . These goals depend on continued advancements in cryptography, engineering, and hardware acceleration . The firm recently secured $57 million in Series B funding to expand its end-to-end encryption capabilities on public blockchains .

Despite the technological progress, the 1,000 transactions per second benchmark remains pre-production and is not yet live on any mainnet . The company continues to refine its infrastructure to ensure stability and security before full deployment . Market observers are monitoring Zama’s ability to maintain its cost efficiency claims as the technology scales to larger networks . The firm’s strategy focuses on reducing the friction associated with establishing new privacy-focused production sites .

How does Zama's approach compare to existing privacy solutions?

The privacy technology sector is increasingly competitive, with zero-knowledge proofs serving as the primary alternative for on-chain confidentiality . Zama argues that its fully homomorphic encryption model offers superior cost efficiency compared to zero-knowledge architectures . However, the lack of independent verification for these cost metrics introduces uncertainty for potential adopters . Investors and developers must weigh the theoretical advantages of FHE against the proven track record of existing privacy protocols .

Zama’s recent activities, including the shielded USDT transfers and partnerships with compliance firms, highlight a dual focus on privacy and regulatory alignment . The company positions itself as a critical infrastructure provider for the next generation of confidential digital assets . As mainnet activation approaches, the industry will assess whether Zama can deliver on its ambitious performance and cost projections . The outcome of this deployment will influence the broader adoption of fully homomorphic encryption in the cryptocurrency space .