Confidential computing technologies are set to unlock the next $1 trillion of capital for the cryptocurrency ecosystem, according to Remi Gai, founder of Inco, speaking exclusively to Cointelegraph during the FHE Summit 2024.
“There’s the next trillion dollars of opportunities because if you think about what we’re building, it’s enabling creators to build more applications. So first, we’re growing the pie of what’s possible in Web3. A lot of these use cases in Web2 just cannot work in Web3 because we’re missing this confidentiality aspect.”
Inco specializes in building a modular confidential computing network based on fully homomorphic encryption (FHE), aiming to establish itself as the confidential computing layer for blockchain.
Mainstream institutions often hesitate to enter the decentralized finance (DeFi) sector due to the absence of private states in Web3.
However, confidential computing technologies could enhance institutional participation and liquidity in crypto, according to Inco’s Gai. He explained:
“Institutions face challenges entering the space due to its transparency. By enabling an experience akin to what they are familiar with in Web2, this could attract more liquidity, use cases, larger participants, and investments into the sector.”
However, encryption in the blockchain space isn’t primarily about anonymity but rather about securing valuable information, akin to the Secure Sockets Layer (SSL) used on the internet. Gai clarified:
“If blockchain is the value layer of the internet, then we need its SSL equivalent. Many still confuse encryption with anonymity. Encryption simply involves safeguarding valuable information through secure methods, which is currently lacking in the blockchain ecosystem.”
Advancements in confidential computing will also draw in more retail investors
Gai highlighted that confidential computing advancements are expected to attract a blend of new institutional and retail liquidity into the crypto space.
He elaborated:
“With the new use cases it will introduce, it will also attract net new users, thereby bringing in additional liquidity. This could benefit retail investors as well, not just institutions.”
The amount of new liquidity generated will largely hinge on the disruptive potential of the new use cases enabled by confidential computing advancements.
These technologies, such as fully homomorphic encryption (FHE) solutions, enable computations to be conducted on encrypted data without the need for decryption, presenting significant opportunities for financial institutions.
