Fhenix’s Decomposable BFV Makes Exact Fully Homomorphic Encryption A Reality For Blockchain Applications
Tel Aviv, Israel, February 6th, 2026, Chainwire
Fhenix, a pioneering developer of encrypted smart contracts with fully homomorphic encryption (FHE), has achieved a new milestone for blockchain privacy with the development of its cutting-edge Decomposed BFV technology. It’s a groundbreaking new cryptographic technique that’s poised to transform the performance and scalability of exact FHE schemes and enable robust, high-throughput privacy-preserving computation for real-world applications.
FHE makes it possible to perform computations on encrypted data without ever having to decrypt it. It has tremendous promise for data privacy, potentially enabling the secure processing and analysis of sensitive information. However, FHE has yet to live up to this promise, for the technology has always been constrained by a key performance bottleneck – namely, the catastrophic scaling of computational costs and noise when performing arithmetic on large numbers.
The scaling challenge of FHE is especially acute in exact schemes such as BFV and BGV, which are essential for computing financial logic due to the requirement of perfect precision. As plaintext integers grow, noise management costs escalate rapidly, rendering real-world, high-volume applications impractical.
Accelerated computational throughput
Fhenix’s DBFV represents a paradigm shift for encrypted arithmetic. By decomposing single, large plaintext data into smaller, independently-managed BFV ciphertexts or “limbs” during the encryption process, DBFV dramatically improves the throughput and scaling behavior of FHE.
For years, running exact FHE on larger integers simply wasn’t viable. While the mathematics were sound, developers would quickly crash into a performance wall when running real-world production workloads. The excessive bootstrapping costs made it impractical for any application.
By enhancing the noise management process, DBFV supports the use of deeper circuits before costly bootstrapping is required. It manages noise more efficiently across multiple “limbs,” expanding the useful depth of computation. While some operations, such as multiplication, become slightly more expensive compared to standard BFV, DBFV’s avoidance of frequent bootstrapping significantly reduces the overall computational cost of noise remediation. For the first time, it enables the cost-effective computation of sustained encrypted workloads, making FHE viable for decentralized finance protocols and enterprise-grade blockchain solutions.
DBFV will support the development of a new generation of FHE applications that require speed and precision, including financial logic, stateful applications and high-volume data aggregation.
Fhenix intends to integrate DBFV as a foundational element of its infrastructure later this year, weaponizing pure cryptography to eliminate a bottleneck that many thought could never be overcome. It will redefine how precision, noise and circuit depth interact, making FHE a deployable reality and paving the way for developers to build complex, privacy-preserving financial applications without sacrificing performance on precision.
About Fhenix
Fhenix is a research and development company pioneering encrypted smart contracts with fully homomorphic encryption (FHE). Starting with a laser focus on Private DeFi, Fhenix is building the infrastructure to bring FHE everywhere – empowering developers, institutions, and users to create and use financial applications without sacrificing confidentiality or composability. Learn more at www.fhenix.io.