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

[Multicoin Capital partner Kyle Samani: More optimistic about FHE compared to TEE and ZKP] On October 23, Multicoin Capital partner Kyle Samani posted on X, joining the recent heated privacy discussion in the encryption community, stating that assets are more important than privacy. For 99% of people, the risk of fluctuation far outweighs the benefits of privacy. There are mainly 3 methods to achieve on-chain privacy: Trusted Execution Environment ( TEE ), zk-SNARKs ( ZKP ), fully homomorphic encryption ( FHE ). When considering which method is optimal, three variables are crucial: A, permissionless; B, able to execute any DeFi; C, scalability of algorithm + chip. However, TEE does not work in a permissionless environment, and B is precisely where ZKP fails. He cited the recent big pump of the privacy project Zcash as an example. When you submit an anonymous Zcash transaction, this transaction is actually not visible or cannot interact with any other person's assets, making DeFi impossible. FHE, on the other hand, allows computation on encrypted data, and privacy DeFi based on FHE structure is straightforward. Therefore, he expressed that he is more optimistic about FHE.