It’s unfortunate that all the applications right now feel very hand-wavy. Still, $50M in projected contract value is a nice sounding number which probably was used to land the $73M investment. It’ll be interesting to see if they can break out of niches because it’s highly likely that FHE will remain at least an order of magnitude more expensive than normal computers even with HW acceleration.

I would take those figures with a huge grain of salt. They were backed by crypto VCs and it sounds like their use-case at the moment is going to be allowing sensitive data to be persisted to and computed on-chain. I'm not saying this isn't a valid use-case, but I wouldn't be surprised if the contracts are from their VC's portcos and that the value is in tokens, not in cash.

Nonetheless, glad to see homomorphic encryption getting funded.

Yeah, I do take it with a grain of salt, especially since the valuation could be a form of self-dealing to hype up other investments. This is a legit company though and the researchers there are really moving the field forward and maybe someday it’ll have real applications. Certainly more interesting use of funds than other blockchain wastes of time.

HW acceleration isn’t going to help much here because it’s really the exploding space complexity that needs to be addressed.

I didn’t explain why I thought HW wouldn’t help as much but yes, the exploding space complexity is definitely a big problem.

I don't think we do, its just that just like I don't want to work for big oil, defense, or tobacco companies, I have no interest in working on cryptocurrencies when their biggest contribution I see is rug pulls and proof-of-waste algorithms.

I don't think companies like Coinbase, Circle, or Kraken are rug pulls. USDC is a very interesting concept. Ethereum uses Proof of Work (which is an interesting game theory problem to solve itself), which does not energy consumption to secure their network.

It's still undeniable that most crypto projects exist primarily to get retail investors to buy in to allow VCs and other insiders to cash out on them. Not directly as a simple rugpull but a longer term slow bleed, using the leverage they hold in an ecosystem in the near term to manipulate it in a direction that's useful to them in the long term. a16z is massively guilty of this.

Just a note, Ethereum uses Proof of Stake now instead of Proof of Work, which is what drives the reduction in energy consumption.