Fully Homomorphic Encryption is reshaping how we think about blockchain privacy. Unlike traditional methods that force you to choose between confidentiality and functionality, FHE lets encrypted data get processed directly on-chain—no decryption needed. What makes this particularly interesting? It actually scales. Zama's approach involves building an encryption layer that sits on top of existing chains like Ethereum, maintaining composability while adding genuine confidentiality. The tech isn't just theoretical anymore—it's becoming a practical solution for DeFi protocols and dApps that need to keep sensitive data private without sacrificing the transparency that makes blockchain useful.