Multicoin Capital partner Kyle Samani: More optimistic about FHE compared to TEE and ZKP

Jinse Finance reported that on October 23, Multicoin Capital partner Kyle Samani joined the recent heated privacy discussion in the crypto community by posting on X, stating that assets are more important than privacy. For 99% of people, the risks of volatility far outweigh the benefits brought by privacy. There are three main ways to achieve on-chain privacy: Trusted Execution Environment (TEE), Zero-Knowledge Proof (ZKP), and Fully Homomorphic Encryption (FHE). When considering which method is optimal, three variables are important: A. Permissionless; B. Ability to execute arbitrary DeFi; C. Scalability of algorithms and chips. However, TEE does not work in a permissionless environment, and B is exactly where ZKP fails. He cited the recently surging privacy project Zcash as an example: when you submit an anonymous Zcash transaction, this transaction is actually invisible and cannot interact with anyone else's assets, making DeFi impossible. FHE, on the other hand, allows computation on encrypted data, and privacy DeFi using FHE architecture is very straightforward. Therefore, he expressed that he is more optimistic about FHE.