As AI & ML demand more data and big tech exploits it, privacy is crucial.
FHE and other PETs are already transforming data security, but combining these with web3 tech has the power to unleash innovation while ensuring privacy + autonomy 🧵
Filecoin is revolutionising the worlds of data and AI.
Join us as we present our thesis on
@Filecoin
and discover the potential of a data revolution enabled by the next AWS 👇
1/We are excited to back
@ConcreteXYZ
in changing the future of on-chain debt and credit markets: Higher yields, no liquidations, and advanced predictions.
Homomorphic Encryption (HE) can unlock massive potential for data privacy & interoperability across Blockchain.
In part one of this series,
@diogo_balemdia
breaks down how these algorithms work & the most common challenges for builders 👇
Welcome to Lightshift, where we obsess over powering the brightest minds.
After 1.5 years of co-building top web3 projects, it's time to show the world our résumé:
A thread on how we make lasting contributions as a fund 👇
The 3rd edition of
@ETHLisbon
is shaping up to be the best one yet
1000+ applications
$100k in prizes and bounties
3 days focused on building
Doors open at 2pm 🫡
What an incredible day at
@Encrypt_xyz
! We're thrilled to have helped co-host this amazing event and hear from some of the brightest minds in ZK, MPC, & FHE.
Definitely inspired by the energy and ideas here yesterday 🔥
Web3 is broken. dWallet is fixing it.
Join us as we introduce Zero Trust Protocols (ZTPs) and a new way to access, custody and program digital assets on any blockchain.
🧵👇
Storage: Filecoin's storage capacity has grown 10x in the past year, with more than 3,500 storage providers and approximately 10 exabytes of capacity. It's now the largest decentralized network, and there is potential for a 100x expansion.
Filecoin is seen as a simple storage solution. But it is pioneering in 4 major verticals: storage, retrieval, compute & programmability. Each has the potential to lead its category. Together, they position it as a unique blockchain ready to host the future of tech innovation.
Retrieval: Filecoin's retrieval market has emerged as the world's third most distributed CDN, providing efficient data access with 2,500 points of presence and 10% of Cloudflare's capacity.
Filecoin's true power lies in its ability to decouple software from hardware breaking down centralized walled gardens. It's not about where data is stored, it's about the ecosystem of applications that data can leverage and interact with. It’s about the composability it unlocks.
Compute: Over 10 teams are actively developing compute solutions to make Filecoin the home of AI, enabling data computation without movement of data and optimizing networks for specialised use cases like FHE and ZK.
Today, we are sharing our internal analysis of how
#Web3
markets are evolving. This is not about the fleeting trends or 2024 predictions; it's about understanding where we're heading.
#BlockchainEvolution
#CryptoFuture
AWS revolutionized the industry, evolving from basic storage services to a global cloud computing powerhouse. But the future of web is about decentralization & composability. Filecoin has potential to be the next AWS & one of the most transformational projects of our generation.
Programmability: With the launch of the FVM it became a blockchain as well, already hosting over 2.5k unique contracts and 570k+ users. This opens doors to a diverse range of applications, from DataDAOs and permanent storage to DeFi.
Last week we shared
@diogo_balmeida
's article on the fundamentals of FHE and its potential for blockchain.
But why do we need new privacy frameworks?
How are things working now?
Why are they broken? 👀
Read on to learn more 🧵👇
Homomorphic Encryption (HE) can unlock massive potential for data privacy & interoperability across Blockchain.
In part one of this series,
@diogo_balemdia
breaks down how these algorithms work & the most common challenges for builders 👇
Filecoin's roadmap includes 2 pivotal developments: Interplanetary Consensus (IPC) and a new consensus mechanism to enhance network efficiency and reduce finality to 10-30 seconds. Also, the FIL token is transitioning towards a deflationary model, akin to Ethereum's EIP-1559.
Filecoin isn't just a storage solution, it's a comprehensive Layer 1 infrastructure supporting storage, retrieval, compute, programmability, and consensus. It's a cornerstone in the paradigm shift toward web3 infrastructure, unlocking new possibilities and applications.
@diogo_balmeida
presenting the winning projects 🔥
Congrats to every participant, volunteer, sponsor, judge and partner who made this edition of
@ETHLisbon
so special
Presenting
@Lightshift
’s thesis on
@ConcreteXYZ
, a groundbreaking protocol revolutionizing on-chain debt and credit markets, led by the visionary duo
@albusdumbledapp
&
@dill_sl
. Here's why we're excited to support them 👇
🦄✨ If you're headed to Brussels, join us at
@Encrypt_xyz
to explore some of the most exciting topics in the space
→ how FHE is enabling computation on encrypted data and sparking the imagination of builders
→ real-world ZK research
→ innovations in TSS and MPC in Web3💡
Are you a visionary founder who is shaping the future of data, compute, and artificial intelligence applications?
Join us, and together, we can continue to push the boundaries of what's possible in the world of technology.
🚀 Join the Lightshift Team! We are hiring a passionate Blockchain Engineer to shape the future of Web3! Check out the thread below for more details.
Are you up for the challenge? Apply now!
#BlockchainEngineer
#FirstThirdLast
1/Global data creation is zooming from 2 Zettabytes in 2010 to a projected 2000 Zettabytes by 2035. We're talking about a 10x surge in just over a decade! Keep reading to delve into this phenomenal growth.
FHE is typically grounded in lattice mathematics & widely recognised for its resistance to quantum attacks.
In Blockchain, TFHE is the most well-known scheme, as
@zama_fhe
recently developed several tools to leverage it & projects like
@inconetwork
and
@FhenixIO
employ TFHE.
Disclaimer: This post is for informational purposes only and should not be relied upon as investment advice. This post is not a recommendation for any security or investment. Always do your research 🙏
Join the Lightshift team!
We're looking for talented blockchain engineers to join our core engineering team.
You'll have the opportunity to co-build promising and impactful web3 projects and work alongside top founders and teams.
What we're looking for ↓
▸ Proven expertise
If you don't want to take our word for it, you might want to ask the projects we built with. We had the privilege to collaborate with the brightest minds from
@portals_fi
,
@Odsyxyz
,
@QuasarFi
and more! This work does not only begin after we wrote a check.
We set ourselves apart, because we understand the importance of the builder community and see ourselves as a part of it. We enable builders to learn and realise fresh ideas. That's why we launched
@ETHLisbon
and
@activate_build
and contribute open-source.
🚀 London's calling all crypto enthusiasts!
We joined forces with
@Odsyxyz
to co-host - a deep dive into the latest cryptography research and real-world applications.
Expect highly technical sessions & practical demos from leading cryptography experts.
* We are the third: We act as your third co-founder - our commitment goes beyond capital
* We are the last: We are in it for the long haul and know that catalysing change is not fast or easy. We intend to be the last ones standing.
Don't miss your chance to catch
@union_build
at
@CosmoverseHQ
this year!
What they achieved in only six months is huge and we can't wait to see what's next ↗️
Our new website tells a story of missions completed - we built alongside founders, wrote code base, tested meticulously, validated their logic, wrote white papers, smashed bugs, launched on new chains, and hosted boot camps and hackathons.
We're thrilled to sponsor Encrypt! 🦄 Join us as we power this groundbreaking event, bringing together the brightest minds in cryptography and Web3.
#EncryptBrussels
#Cryptography
#Web3
We’re excited to showcase our co-host for Encrypt Brussels:
@Lightshift_xyz
! We're joining forces to bring you an extraordinary event. Stay tuned for more thrilling updates!
Get tickets here:
#EncryptBrussels
#Cryptography
#Web3
Our technical contributions are the heart of what we do, which is why they deserve the centre stage on our new website - actions speak louder than words and we deliver what we promise.
Tools like Concrete ML from
@zama_fhe
allow developers to turn ML models into their homomorphic equivalents, simplifying the use of FHE for data scientists who can use the tool without needing formal cryptography knowledge.
1/
@D3inc
is building the next generation of interoperable web3 domain names. Here is a thread on why we believe their tech is so promising and how Lightshift is going to help them execute their vision 👇
Challenges for FHE's mainstream implementation include security, tooling & computation speed. Mitigating these risks involves enhancing FHE schemes but also integrating them with complementary technologies like ZK, MPC, and others.
Where FHE schemes differ is the fact that mathematical operations performed on encrypted data have the same effects on decrypted data, making it possible to compute over data without having to decrypt it.
We are thrilled to announce
@D3inc
, a company focused on interoperable digital identity infrastructure aka the missing 🧩 to a decentralised future
Our engineers jumped at the invitation to co-build the web3 components for this project. Congrats to a team with huge potential!
@D3inc
is a next-generation domain names company pioneering the modern digital identity narrative. We’ve raised $5m in seed funding to create the next billion web3-interoperable domains on the Internet!
🔗
HE addresses one of the most common problems in today’s systems: It empowers data-owners to encrypt their data and subsequently share it with third parties for computations (e.g. ML) or other operations without having to disclose the content of the data itself.
Homomorphic schemes primarily center around addition and multiplication since, in theory, all operations can be represented by additions and multiplications. Consequently, if these two operations can be performed, then one can perform arbitrary computations on HE-encrypted data.
FHE builds on “regular” encryption mechanisms that use a pair of keys to encrypt and decrypt data. Such systems rely on the fact that it is computationally intensive to decrypt a message without the secret key.
Part two of this series will compare FHE to other privacy solutions, explore concrete use cases, and highlight teams who are building with it in blockchain - coming soon! Are you building with FHE or want to collaborate with us? Reach out to
@diogo_balmeida
Proud to co-host in London on March 15. If you're interested in modern cryptography cutting-edge research with real-world applications, specifically ZK, MPC and FHE - come join us!
7/
@Filecoin
's potential is far from tapped out. With AWS juggling hundreds of EiBs and the world gearing up for over 2000 ZiBs of data by 2035, the room for growth is immense. Indeed, Filecoin could amplify its reach by 100x, marking a new era in the data storage universe.
Current approaches to enhance the speed of FHE systems focus on hardware acceleration. Likewise, the schemes themselves can undergo improvements to increase efficiency. However, the latter appears to be more complex than hardware accelerations.
The main characteristic of HE is the fact that the same output is obtained by performing the computation on the encrypted data (ciphertext) or the decrypted data (plaintext). Different types of HE schemes can be distinguished by the number of operations they allow.
Unlock seamless interoperability and complete control.
Build without compromises or tradeoffs. Embrace user ownership and decentralization.
Welcome to Zero Trust👇
@Web3Family_
@truckerfling
@_zondax_
We’re thrilled everyone in our Lisbon community to have the opportunity to connect and build together ☺️
Join us!
🗓️ April 24, 6 - 9pm CEST
[]()
PETs also enhance privacy with encrypted searches and enable secure data collaboration and analysis.
These capabilities are crucial for protecting sensitive information while allowing valuable insights.
Unlike other technologies, FHE enables encrypted storage of DIDs with controlled decryption permissions.
@0xHolonym
, building privacy-preserving identity solutions, is developing a network for this use case, unlocking numerous applications across healthcare, finance, and law.
Enter the
@dWallet
Network, with a way to generate ECDSA / EdDSA / Schnorr signatures for virtually any blockchain.
Its 2PC-MPC protocol cryptographically requires both the user and a massively decentralized network of nodes to sign a transaction.
2/
@ConcreteXYZ
allows for automated protection of borrowers preventing assets from liquidation. Its models stop liquidations & dramatically reduce the accumulation of bad debt for lenders. A fundamental upending of traditional frameworks and a massive unlock for DeFi.
6/
@Filecoin
's next move? Boosting demand. What started as 24 PiB of data storage in early 2022 rocketed to 461 PiB by the following year. Deal numbers soared from 1 million to nearly 17 million, with the community of network builders almost doubling to 600.
Identity and KYC processes also benefit from FHE combined with other cryptographic tools.
Voting and governance systems can leverage this technology to ensure both privacy and transparency.
✨ By combining technologies like FHE, ZK, MPC & TEE with web3, we have the power to create a future where privacy and self-sovereignty are the norm.
We're excited to embrace this new paradigm in privacy.
12/ The vision and execution of
@albusdumbledapp
&
@dill_sl
, blending deep TradFi experience with profound DeFi expertise and their capacity to assemble a top-tier team from Point72,
@MorganStanley
, Galaxy Digital,
@Polkadot
, left us extremely impressed.
Imagine the need to run an AI model on sensitive data.
FHE allows using cloud services without exposing the data, while web3 solutions like ZK proofs verify the actions of these cloud providers.
Blockchains need on-chain privacy to fulfill their full potential.
PETs like FHE, when integrated with web3 tech, ensure data privacy and security across the decentralized ecosystem.
While FHE addresses encrypting data in use, other PETs like MPC and ZK proofs tackle different privacy challenges.
Combining PETs with web3 ensures advanced privacy tech remains decentralized and accessible.
Come build Zero Trust protocols:
⊹ An Eigenlayer with assets from any chain, including native Bitcoin
⊹ A marketplace for all NFTs, regardless of standard
⊹ A swap protocol to buy a portfolio with assets from multiple chains 👀
2/ Primary and secondary traditional debt markets are key to TradFi lending and rely on sophisticated protective risk management strategies. On-chain debt markets however, lack maturity and use over-collateralization as the main form of protection resulting in low capital
11/ The blend of traditional finance expertise and DeFi innovation in the leadership of
@albusdumbledapp
&
@dill_sl
, alongside a stellar team from industry giants, promises a transformative future for DeFi.
Projects’ lifespan
S&P500 companies' lifespans have dramatically reduced from 50 to ~12 years, due to faster innovation cycles. This trend, fueled by vast data, precise profiling, and easy user access, challenges the Lindy effect and is expected to intensify in evolving markets
9/ In all DeFi protocols, especially the ones building new primitives, exploitation risk is a reality. However, throughout the DD process, Concrete's team emphasized their architectural focus on robustness, ensuring their protocol is built to withstand extreme volatility.
Real-life applications of PETs are emerging across countless sectors.
In finance, FHE allows predictions on encrypted data without compromising client privacy. In voting systems, it ensures voter anonymity and process transparency.
3/ Due to over-collateralization requirements, liquidations, a large percentage of which occur overnight, remain a persistent challenge within the DeFilandscape.
Workarounds are not the end game.
Centralized multisigs, wrapped assets, vulnerable bridges, terrible UX and fully custodial solutions have created a host of problems.
As
@vitalik
points out, the future can’t be cross-chain.
My argument for why the future will be *multi-chain*, but it will not be *cross-chain*: there are fundamental limits to the security of bridges that hop across multiple "zones of sovereignty". From :
4/ For crypto debt markets to thrive we need an on-chain risk management solution that protects both borrowers against liquidation and lenders against systemic bad debt, all while ensuring capital efficiency. That's where
@ConcreteXYZ
steps in.
10/ Concrete plans to underpin the next DeFi growth phase with innovative credit and debt solutions, including introducing credit default swaps. This ambitious vision to revolutionize on-chain finance was a decisive factor for us.
With dWallets, we can build Zero Trust Protocols, where nothing is trusted and everything must be verified.
Web3 has now a user-owned, decentralized infrastructure controlling all blockchain interactions with full programmability.
1/ Despite FHE’s promise, there are still many obstacles on the path to widespread adoption.
Let’s dissect the most critical areas:
🔸Security
🔸Standardization & Tooling
🔸Computation Speed & Efficiency
🧵👇
Return on Investment
Blockchain's rapid growth and potential for swift decline present a double-edged sword for VCs, offering high returns but also increased risk. This challenges traditional investment strategies and valuation models to adapt to rapid innovation
6/ Ultimately, Concrete is protecting non-stable collateral in DeFi lending via composable credit facilities controlled by an automated dynamic risk modeling. This opens the gateway to building an entirely new set of financial primitives for on-chain assets.
Just like how TLS transformed the early internet, privacy-enhancing technologies (PETs) can transform data security.
By enabling computations on encrypted data, FHE can become the default method for protecting data both at rest and in use.
The protocol creates the “dWallet” primitive - a signing mechanism indistinguishable from any other blockchain user.
Think of a dWallet as a decentralized wallet controlling the keys of multiple wallets and all their assets and smart contract interactions.
13/This is just the start of a revolution in data utility, and we can't wait to see how this ecosystem evolves! To dive deeper, read our 'The Future of Composable Data' article here . Got a project in the works? We'd love to hear about it!
4/Enter
@Filecoin
, a game changer in the storage arena. In its first 18 months, it outdid the early days of Amazon, Google, and Microsoft combined in data stored.
5/ Concrete is pioneering a protocol to enhance DeFi risk management by addressing liquidations through fixed-term credit solutions. This allows users to worry less about collateral management, increasing both the usage and exposure to new use cases with added security.
7/ As one of DeFi's largest sectors, lending is poised for explosive growth as it captures market share from the TradFi Debt markets and, especially, because it serves as the foundation for other derivatives products, including leverage-based ones.
Alice’s example illustrates just one use case of many. In reality, HE has the potential to increase privacy and interoperability across any industry.
Curious to learn more? 👀
Check out our article about the fundamentals of Homomorphic Encryption
8/ This quarter alone, we've seen a 25% increase in large database clients, each with over 1000 TiB. More than 400 large clients are now on board, signaling a clear trend: major data players choose Filecoin for their extensive storage requirements.