On November 27, 2025, the representative of the Shiba Inu team, Lucy, announced a revolutionary upgrade for Shibarium – a Layer-2 network based on Ethereum. This step involves the integration of Fully Homomorphic Encryption (FHE) technology from the Paris-based company Zama, which will allow for processing encrypted data without decryption.
By the end of the second quarter of 2026, Shibarium will achieve full on-chain privacy: transactions, smart contracts, and interactions with dApps will be hidden from prying eyes while maintaining speed and scalability. This will transform the network from a typical L2 into a unique privacy chain, where users can protect personal data, and developers can create secure DeFi, games, and governance tools without the risk of information leakage.
The partnership with Zama, announced back in February 2024, addresses criticism of the excessive transparency of public blockchains. The upgrade will not only enhance the security of BONE – the network's gas token – but also attract institutional players. Experts predict an increase in demand for SHIB, as privacy will solve a key problem for mass adoption. Meanwhile, Shiba Inu has entered into an agreement with TokenPlay AI to expand the gaming ecosystem, where $SHIB is integrated into AI applications with rewards.
This upgrade is a step towards a mature Web3, where privacy becomes the norm.
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