Title: Zama · Vendor · EthSystems

URL Source: https://original.es-internal.pages.dev/vendors/zama/

Markdown Content:
---
description: Zama develops open-source FHE (Fully Homomorphic Encryption) tools that enable confidential smart contracts and encrypted data processing directly on EVM-compatible networks.
title: Zama · Vendor · EthSystems
image: https://original.es-internal.pages.dev/og.png
---

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# Zama – FHE SDK & Confidential Smart Contracts (Fully Homomorphic Encryption for EVM)

## Fits with patterns

* [Private Stablecoin Shielded Payments](/patterns/pattern-private-stablecoin-shielded-payments/) \- FHE enables encrypted balances/amounts for confidential transfers
* [Private Intent-Based Vaults](/patterns/pattern-private-vaults/) \- FHE-enabled chains allow private strategy execution while keeping assets auditable
* [Shielded ERC-20 Transfers](/patterns/pattern-shielding/) \- Native FHE implementation for confidential token transfers
* [Private L2s](/patterns/pattern-privacy-l2s/) \- Zama's fhEVM provides FHE-based rollup capabilities
* [Shielding](/patterns/pattern-shielding/) \- FHE can complement ZK approaches for confidential balance management

## Not a substitute for

* ZK-based L2 privacy (e.g., Aztec, Scroll)
* MPC or TEEs for off-chain privacy computation

## Architecture

Smart contracts are compiled with Zama’s FHE libraries (e.g., `concrete`, `fhEVM`) allowing arithmetic on encrypted values. Execution happens deterministically, with ciphertexts persisted on-chain.

## Privacy domains

* FHE encryption at the contract and variable level.
* Supports hybrid models (FHE + ZK for verification).

## Enterprise demand and use cases

* Financial institutions seeking **on-chain confidentiality** with deterministic settlement.
* Private vaults, confidential lending, or yield strategies.

## Technical details

* EVM-compatible FHE runtime (`fhEVM`)
* SDKs for Solidity and TypeScript
* Ongoing collaborations with Fhenix and Aleph Zero

## Strengths

* Native EVM integration
* Strong cryptographic research pedigree
* Open-source and actively maintained

## Risks and open questions

* High compute cost and latency
* Limited developer tooling maturity
* Interoperability between FHE networks still emerging

## Links

* <https://www.zama.ai>
* <https://github.com/zama-ai/fhevm>
* [Confidential ERC-20](https://www.zama.ai/post/confidential-erc-20-tokens-using-homomorphic-encryption)

Used in

[ Private Bond Issuance & Trading FHE Coprocessor ](/approaches/approach-private-bonds/#fhe-coprocessor)[ Private Money Market Funds FHE Encrypted Balances ](/approaches/approach-private-money-market-funds/#fhe-encrypted-balances)[ Private Smart Derivatives FHE Coprocessor ](/approaches/approach-private-derivatives/#fhe-coprocessor) 

#### Referenced by

building blocks4
* [Modular Privacy Stack](/patterns/pattern-modular-privacy-stack/)
* [Private Intent-Based Vaults](/patterns/pattern-private-vaults/)
* [Private Shared State (FHE)](/patterns/pattern-private-shared-state-fhe/)
* [Private Stablecoin Shielded Payments](/patterns/pattern-private-stablecoin-shielded-payments/)

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