Fhenix has unveiled Nitrogen, an upgraded testnet for its Layer 2 network that incorporates Fully Homomorphic Encryption (FHE).

This testnet specifically tackles blockchain privacy challenges, focusing on ensuring smart contract confidentiality, transaction privacy, and secure asset management.

The ongoing testing and development of Nitrogen prioritize both security and performance ahead of the platform's full deployment.

A significant enhancement is the Parallel Decryptions feature, which employs asynchronous decryption to boost performance in FHE operations.

At its core, Nitrogen utilizes the Threshold Network as its decryption mechanism, which enhances decentralization.

Developers can leverage a native random number generation function through FHE.rand(), which simplifies the smart contract development process.

Nitrogen introduces two Security Zones: Zone 0, designed for enhanced security, and Zone 1, which optimizes performance using a single local keyset.

To improve data availability and lower transaction costs, the testnet integrates with Celestia.

This release is part of Fhenix's preparations for its mainnet launch, although specific timelines have not been disclosed.

Operating as an Ethereum Layer 2 solution, Nitrogen maintains EVM equivalence, allowing developers to continue using Solidity for smart contracts.

Fhenix CEO Guy Itzhaki stated that Nitrogen aims to establish a permissionless and censorship-resistant platform that prioritizes confidentiality through the use of FHE.