Blog

Confidentiality has always been a contentious point in blockchain technology. As public ledgers provide transparency, they often compromise privacy. The drive to reconcile transparency and privacy is at the heart of progress in crypto, and nobody epitomizes this better than Rand Hindi, CEO of Zama.

Hindi and Zama are pioneering the integration of fully homomorphic encryption into public blockchains. BeInCrypto interviewed Rand Hindi at Cannes to discuss Zama’s journey, the mounting investor interest, and the potentially transformative implications of this technology.

Hindi, who leads one of the most acclaimed teams in cryptography, has shepherded Zama to a billion-dollar valuation by focusing on a breakthrough technology that might address some of the sector’s core adoption barriers. The conversation explores how Zama’s protocol operates, the future of confidential payments, and what it means for traditional finance and on-chain scalability.

Hindi shares essential insights on technology’s progression, Zama’s testnet, and the security benefits that go beyond today’s industry standards.

Building Zama: Addressing Privacy Through Homomorphic Encryption

We like to joke that we’re probably the company that raised the most money without anybody understanding what we’re building. The reason for this is because cryptography as a field is very obscure and opaque, but the use cases it enables are very obvious once it actually works.

Zama as a company specializes in something called fully homomorphic encryption, FHE, which is a new encryption technique that allows you to have confidentiality on top of public blockchains. For example, imagine you want to send money confidentially to someone on a blockchain. Today, you wouldn’t. The amount of money you own, the amount you’re sending is public. With our technology, you would actually have that encrypted on chain but still be able to use it as part of any kind of blockchain application.

That is really a radical new proposition, I would say, because up until now, the only way to use a blockchain was to disclose everything to everyone. We’re effectively bridging that gap.

Inside the Zama Protocol and Testnet

When we started a company a few years ago, we focused on licensing our technology to other people. Most people don’t know that nine out of ten blockchain projects that use FHE use Zama technology in the backend.

Now, we are moving to having our own protocol called the Zama protocol that allows you to have confidentiality on top of any blockchain, even those that don’t license our technology directly. So you can have confidentiality on Ethereum, on Base, on Solana, on any really public blockchain.

The ability to have that on a public blockchain means that anybody can now start building apps where the on-chain data stays confidential regardless of which chain they actually want to use to deploy it. So the Zama protocol, like every protocol, has a testnet phase where we effectively launch that and allow developers and users to try it, start building the first apps and use cases ahead of a mainnet launch where it actually goes into production.

Use Cases: Confidential Payments and Beyond

I would say, by far, the biggest use case is confidential payments. If you look at stable coins, you look at global remittances, if you look at payroll, it’s very obvious that if you want to use a blockchain for that, you need to keep data confidential. I mean, if I told you right now to open your phone and show me your bank account, would you? Definitely not a chance.

Okay, there you go. This is what happens in a blockchain because I could see everything you own and do. That makes no sense whatsoever. Once you can encrypt it with homomorphic encryption, then you can start using a blockchain like you use a traditional bank account, like use a traditional credit card for anything from buying your coffee to getting your salary to buying a house. You can do it without other people knowing about it.

That’s one use case. The second one is enabling trading and tokenization of financial assets confidentially. Let’s imagine you are a large financial institution. You’re a hedge fund, you’re a bank. You want to use a blockchain for trading or even for just like, you know, settling some trades with a partner.

If everybody can see your trades and your positions, you’re not going to have much of an advantage in the market. The whole point is to have what we call an alpha, like something, a secret sauce that you don’t reveal. Blockchain today don’t allow you to keep things private. We’re also solving that.

Scaling, Developer Experience, and Security

When we started working on this, there were three main issues. First, it didn’t work. So we had to make the technology work. That’s done. Today, we have the most secure confidentiality technology. It’s even secure against quantum computers. So it’s as secure as it can ever be.

The second problem was it was very difficult to use for a developer. We actually solve that by integrating our technology into existing programming languages for smart contracts, like Solidity, for example, on Ethereum. As a developer, you don’t need to know cryptography to build a confidential application on chain.

And finally, there’s performance. FHE traditionally was very slow. We fixed that through new mathematics, better engineering, but also with better hardware. Effectively, today, scaling FHE and, therefore, scaling global payments on-chain, all these are use cases, is just a matter of putting more compute behind it. If there is one thing we learn from AI, it is that we can throw more compute than it works. We know how to do that. Just put more servers, put more GPUs, it’ll go faster.

So, there’s really nothing preventing homomorphic encryption from becoming the technology that makes it possible to have on-chain finance in a confidential manner.

You can think of it a little bit like, in your browser, when you connect to a website, you have this small lock that tells you that this is encrypted and protected. We’re effectively doing the same thing for blockchain.

Traditional Finance Appetite and Industry Examples

I would say that probably over half of the companies we talk to are financial institutions that are not Web3 native. They all want the same thing. They want to use blockchain because blockchain is the right solution for finance. We all agree on that. That’s established by everybody from Circle to all of these other companies doing that. Confidentiality was the last blocking point for the mass adoption of blockchain for finance.

I’ll give you two examples. We are working with a company right now that is issuing a confidential stablecoin. What it means is, it’s a regular stablecoin, you can use it for payment on chain, but the issuance is confidential, the amounts that you own is confidential, the amount you transfer is confidential, so you can actually use it for payment without having to disclose anything to other people.

That’s one example. Another example is that there is a company building an on-chain self-custodial bank where your money on chain is kept confidential with our technology. We’re talking about something like Revolut, fully on-chain, self-custodial, so even if the bank goes down, you can get back your money because it’s on-chain.

Try to imagine like the first bank that cannot rug you.

Performance, Security, and Cost

Speed-wise, there is going to be almost no difference. It’s not going to slow down the underlying blockchain. The latency is a couple of seconds, a few seconds. You’re probably not going to see it. Just clicking around on an app is going to take longer than that, effectively. So speed is not an issue. Cost is not an issue. At scale, it can be as cheap as about a cent per confidential token transfer.

On like an L2, like base, even in Ethereum, we’re just adding a couple of cents on top of Ethereum gas fees. We’re almost as cheap as the underlying blockchain allows us to be, pretty much. So that’s not an issue. The third one in terms of security we are post-quantum. Even a quantum computer cannot break homomorphic encryption, FHE. That is very important because there are many technologies that are being used today as shortcuts because they’re supposedly more performant.

First of all, that’s not true. But second of all, those technologies have been broken and will be broken going forward. If you want to have the best amount of security, you have to use FHE. There is nothing else that can actually get even closer.

The Road Ahead: Future Developments and Adoption Trajectory

So we’re in testnet now, that’s already big. We’re planning to have our first main net at the end of, let’s say October.

From that point, we’re gonna have other blockchains being supported, and then it’s game on. You know, initially let’s get at least 1% of watching transactions confidential, then 10% and 20%. If we take again the example of HTTPS, in your browser, the small lock protects your data. We’re connecting to the website. It went from 5% of the internet traffic being encrypted in 2010 to 96% now, I believe. We believe FHE will follow a similar type of trajectory where, five, six, or 10 years from now, over 90% of blockchain transactions will be encrypted and confidential with homomorphic encryption.

Conclusion

Rand Hindi’s vision for Zama represents a major leap for both user privacy and institutional confidence in blockchain networks. Fully homomorphic encryption is set to enable confidential apps, payments, trading, and on-chain banking, all without sacrificing security or speed.

As Zama moves from testnet to mainnet, the aim is to make confidential blockchain transactions as common as secure web browsing. Hindi’s conviction is clear—within the next decade, encrypted, private transactions could become the standard, not the exception, across every major blockchain.

The post Zama CEO Rand Hindi: Why Homomorphic Encryption Is Key to Blockchain’s Future appeared first on BeInCrypto.

The US government agreed to drop Coin Center’s appeal concerning Tornado Cash, guaranteeing future protection from sanctions. The platform’s TORN asset spiked after the announcement.

Still, it’s a little unclear what the platform’s next steps are. Several of its leaders face ongoing legal battles, even if the decentralized software remains operational.

Sanctions Protection for Tornado Cash

Tornado Cash, a popular decentralized crypto mixer, has been engaged in various legal battles for multiple years now. Although the DOJ is still actively prosecuting co-founder Roman Storm, blocking a string of his proposed trial witnesses, the firm won a breakthrough today. After much back and forth, the US government is dropping its appeal against the company:

This is the official end to our court battle over the statutory authority behind the TC sanctions. The government was not interested in moving forward and defending their dangerously overbroad interpretation of sanctions laws.

Thank you again to our co-plaintiffs:…

— Peter Van Valkenburgh (@valkenburgh) July 7, 2025

Coin Center, a blockchain advocacy group, has been suing the US Treasury on behalf of Tornado Cash. The Treasury imposed sanctions on the platform for allegedly aiding North Korean hacking efforts, but crypto’s political climate has shifted. These sanctions were removed in November and have since become the centerpoint of an ongoing squabble.

According to a report from Bloomberg Law, the crux of the issue regards a Texas District Court’s ruling against Tornado Cash sanctions. Essentially, Coin Center was set on legally ensuring that the US government couldn’t use the same pretext to sanction the firm again.

After all, crypto is enjoying a good moment, but fortune can be fickle. Watchdogs have already raised the alarm that the US could sanction Tornado Cash again, prompting Coin Center’s lawsuit. Its aim has been successful, causing the TORN asset to rise over 4% today on top of a brief spike:

Nonetheless, it’s a little unclear where Tornado Cash will go from here. Although the platform is still operational, several of its main leaders face continuing legal battles. It’s a very good sign that the US sanctions aren’t coming back for the foreseeable future, but the platform has a long way to go to restore its former position.

The post US Government Drops Tornado Cash Appeal, Boosting TORN’s Value appeared first on BeInCrypto.

Since peaking at an intraday price high of $0.0000176 on May 12, the leading meme coin, Shiba Inu (SHIB), has witnessed a 33% decline. 

Due to the coin’s lackluster performance, on-chain data reveals that a significant portion of SHIB holders are currently at a net unrealized loss, signaling a state of capitulation in the market. What does this mean for investors?

SHIB Bleeds as 87% of Addresses Now ‘Out of the Money’

According to Glassnode, SHIB’s Net Unrealized Profit/Loss (NUPL) metric shows that the meme coin is firmly in the capitulation zone.

The NUPL metric measures the difference between all holders’ total unrealized profits and unrealized losses relative to an asset’s market cap. It offers insight into whether the market, on average, is in a state of profit or loss.

Per Glassnode, market participants are in capitulation when an asset’s NUPL is negative. This occurs when the total unrealized losses in the market exceed unrealized gains, suggesting that most holders are underwater. It reflects a period of loss where investors either panic sell or hold in distress. 

IntoTheBlock’s Global In/Out of the Money confirms this bearish sentiment. At press time, the metric shows that over 87.34% of all SHIB holders are currently “out of the money.”

An address is considered “out of the money” when the current market price of the asset it holds is lower than the average acquisition cost of the tokens in that address. This means the holder would incur losses if they sold their assets at the market price.

SHIB Capitulates—But Is a Price Bottom Closer Than It Looks?

Historically, negative NUPL readings mark the late stages of a bearish cycle. It usually precedes a price bottom and eventual rebound in an asset’s price. This happens for two reasons.

First, when many holders are sitting on losses, they are often unmotivated to sell. Instead, they choose to wait for a recovery to break even. This behavior reduces selling pressure, which can help stabilize the asset’s price over time. As volatility declines and the price begins to consolidate, it creates conditions that encourage fresh SHIB buying and potentially drive the price upward.

Also, periods of capitulation tend to flush out “weak hands” while paving the way for “diamond hands” (more confident, long-term investors) to enter the market. These more resilient buyers accumulate during market distress, bringing in capital that could support a bullish price reversal. 

Will SHIB Reclaim Higher Ground Above $0.000012?

At press time, SHIB trades at $0.00001180. If selling pressure wanes and fresh buying resumes, it could propel the meme coin past the immediate resistance at $0.0000198. A breach of this price barrier could propel SHIB toward $0.00001362.

However, if bearish pressure strengthens and the decline continues, SHIB’s price could fall to $0.00001105.

Adding to the short-term bearish outlook is SHIB’s declining burn rate. Over the past day, this has dropped by 92%. As fewer tokens are being taken out of circulation, it makes it harder for SHIB’s price to rally in the absence of new demand.

If burn activity fails to recover soon, it could delay SHIB’s attempt to reclaim higher price levels.

The post Shiba Inu Faces Capitulation—What’s Next as 87% of Holders Sit in Loss? appeared first on BeInCrypto.

The US transferred Ethereum worth $219,000 to Coinbase, sparking fears of a potential sale. ETH’s price hasn’t been impacted, but the community has a lot of unanswered questions.

On the surface, this looks like a minuscule amount compared to the federal government’s $650 million ETH stockpile. However, this is its first transfer of assets to an exchange since shortly after President Trump took office, and it may be a warning sign.

Why is the US Moving Ethereum?

It’s well-known that the US government maintains a huge stockpile of Bitcoin, which it seized from various criminal enterprises. Whenever it liquidates some of these assets, the market moves, and crypto enthusiasts everywhere take notice. Today, Arkham Intelligence discovered that the US moved around $219,000 in Ethereum to Coinbase:

ARKHAM ALERT: THE US GOVERNMENT JUST DEPOSITED $200K ETH TO COINBASE

A US Government wallet just moved $200K to a Coinbase Prime Deposit, after a $10 test transaction.

This ETH was originally seized from Chase Senecal in October 2022. pic.twitter.com/CFdfN73zyD

— Arkham (@arkham) July 7, 2025

At the moment, it’s quite unclear why this happened. Under President Biden, the federal government liquidated tons of Bitcoin last year, and transfers to Coinbase were a key early warning sign of these sales. In response, Trump proposed making a US Crypto Reserve, and his plan explicitly includes altcoins like Ethereum.

So, why is this transfer happening? Several commentators immediately assumed that the US is planning to dispose of this Ethereum. After all, even though ETH is in a stable place right now, it experienced nearly six straight months of decline directly beforehand.

Since President Trump took office, the federal government has only transferred tokens to an exchange on one other occasion. This incident, however, was an even smaller amount, and it took place less than a week after his Inauguration. Now, however, he’s been in office for months, and the White House is actively working on a Crypto Reserve.

In other words, the US may be planning to liquidate more Ethereum in the future. Sure, this is a tiny transfer, but it could be an important warning signal. In effect, any transfer from the government to exchanges is a major policy reversal, especially if ETH will be in the Crypto Reserve.

Still, it’s important to keep this move in perspective. The US government currently holds over $650 million in Ethereum, but it transferred less than $220,000 to Coinbase. It only moved assets that it seized from scammer Chase Senecal in 2022, but didn’t even move all of his confiscated tokens. This ETH liquidation theory may be unrealistic or overblown.

At the moment, there are a lot of unanswered questions about this US government Ethereum transfer. So far, this news hasn’t moved ETH’s price much, hopefully signifying a lack of investor FUD. Nonetheless, this uncertainty could lead to future uneasiness.

The post US Government Transfers Ethereum to Coinbase, Sparking Fears of Bigger Liquidation appeared first on BeInCrypto.

As the second week of July begins, the bearish sentiment from Q2 appears to be fading quickly. Meme coins are gaining traction, with many emerging in the market.

BeInCrypto has analyzed three such meme coins that are attracting significant attention from investors, indicating a potential shift in market conditions.

Hosico Cat (HOSICO)

HOSICO has been on an impressive upward trajectory since the end of June, currently trading at $0.0631. In the past week, the meme coin has surged by 109%, showing significant growth. This price movement signals strong momentum and growing investor interest in HOSICO.

During this surge, HOSICO managed to set a new all-time high (ATH) at $0.0775. The altcoin’s bullish trend seems likely to continue, with further potential for forming new ATHs. If the momentum persists, HOSICO could see even greater price movements, attracting more attention from investors.

However, if selling pressure increases, HOSICO’s bullish outlook could be invalidated. A drop below the support level of $0.0619 would likely signal a retreat, potentially pushing the meme coin down to $0.0486. Such a pullback would suggest a shift in market sentiment.

Useless (USELESS)

USELESS has been gaining significant momentum, rising by nearly 26% this week. The meme coin is currently trading at $0.280, following a similar trend seen in other meme coins. This surge indicates strong investor interest and suggests a potential for further price movement in the coming weeks.

Having secured $0.250 as a support level, USELESS appears poised for growth. The Chaikin Money Flow (CMF) shows strong inflows, supporting the altcoin’s upward trend. If this continues, USELESS could breach its all-time high (ATH) of $0.309 and potentially set a new ATH at $0.400.

However, if investors choose to cash out and secure profits, USELESS could face a significant pullback. A drop below the $0.250 support level could push the altcoin down to $0.182, invalidating the current bullish thesis. This would signal a shift in market sentiment and lead to a potential downturn.

Osaka Protocol (OSAK)

OSAK has gained 50% this week, showing significant recovery after a challenging June. Currently trading at $0.0000000997, the meme coin is drawing investor attention due to its recent momentum. This increase indicates potential for further growth if the current trend continues, with OSAK aiming for higher levels.

The next target for OSAK is to breach the resistance level of $0.0000001090 and push toward $0.0000001240. The Parabolic SAR below the candlesticks is acting as support, signaling an active uptrend. This positive indicator suggests that the meme coin has the potential to continue climbing if market conditions remain favorable.

However, if the broader market experiences a downturn, OSAK could face selling pressure. A drop below the support of $0.0000000965 would signal a potential reversal, pushing the altcoin down to $0.0000000866. This scenario would invalidate the current bullish outlook, pointing to a possible correction in OSAK’s price movement.

The post 3 Meme Coins To Watch In The Second Week Of July appeared first on BeInCrypto.