The development of AI in recent years has been evident to all, heralding the arrival of a new era — truly autonomous and secure AI entities. But whether this world can exist is not about how powerful AI is, but rather — can we trust them? This is the vision of the Agentic World.
🔐 FHE's Practical Scenarios in the Cryptocurrency Sphere
1⃣ Collaborative Computing of Smart Contracts and AI
Traditional smart contracts, while 'automatically trustworthy', also mean a lack of data privacy due to their public transparency. When AI Agents participate in on-chain automated trading, clearing, and liquidity allocation, the data they process (user behavior, on-chain fund distribution, strategy preferences, etc.) is exposed if it cannot be computed in an encrypted manner, revealing Alpha.
FHE allows smart contracts and AI to reason and execute directly on encrypted data, enabling transaction judgments, strategy switches, and risk assessments without the need for decryption. This is revolutionary for high-frequency strategies, oracle protection, DAO governance recommendations, and other scenarios.
2⃣ Private Computation in DeFi
One of the biggest concerns for DeFi users is privacy exposure: wallet addresses linked to asset status, transaction behavior, collateral records, and liquidity provision records. This data can not only be scraped but may also be utilized by MEV algorithms.
With FHE introduced, users can directly engage in encrypted lending, derivatives trading, aggregated routing, and other operations without disclosing personal preferences or asset distributions.
3⃣ Applications of AI Entities in DEX, Contracts, and Blockchain Games
As Agents appear more frequently in trading scenarios, FHE can be used to build a 'privacy-enhanced on-chain Agent factory' — each Agent being an executable entity capable of encrypted computation:
- Execute contract operations on your behalf (limit orders, take profit, stop loss)
- Participate in strategy DAOs (vote based on your set logic)
- Control characters in blockchain games (without revealing your preferences and strategies)
🧬 The ultimate question: Are you willing to let AI use your wallet data?
The answer is yes, but with conditions:
- Revocable authorization (I can lock it after the Agent no longer has access)
- Immutable usage records (what the Agent used and when)
- Traceable behavioral audits (I can verify every step of the Agent)
FHE is the key technology in this answer.
