In a recent Twitter space focused on web 3.0 and VC investment trends, key points were highlighted regarding the VC funding landscape, showing a drop in 2023 and a significant rise in early 2024. The discussion centered on fully homomorphic encryption (FHE) and its difference from and advantages over ZKP. Experts shared insights on how FHE can be used for applications requiring shared encrypted states without the trust assumptions needed for ZKP generation. Early applications are expected in spaces such as private voting and encrypted credit scores. The role of confidentiality and privacy in enterprise applications, VC investment angles, and compliance with privacy regulations like GDPR were also reviewed. The conversation underscored the critical importance of privacy-preserving technology for the progress of web 3 infrastructure.# Web 3.0 and VC Investment Trends

Christian Mason

Christian highlights key investment trends within the web 3 space, mentioning significant drops in VC funding during 2023 and a resurgence in early 2024. He introduces fully homomorphic encryption (FHE) as a notable area of growth with examples including IcanLayer's funding round and Wormhole's investment partnership.

Mads Peterson

Mads offers insights into the advantages of FHE over zero-knowledge proofs (ZKP), emphasizing its potential in creating shared encrypted states without the need for trust assumptions present in ZKP generation. He discusses potential early applications such as private voting and encrypted credit scores.

Kyle Chasse

Kyle discusses the importance of understanding the practical implications of FHE for investors. He mentions the relevance of confidentiality in blockchain transactions and FHE's role in enhancing a project's trustworthiness and investment appeal.

General Discussion

The conversation touches on the integration of web 3 solutions with enterprise needs, highlighting the venture capital angle and possible applications in DeFi and gaming. Privacy regulations such as GDPR and the role of confidentiality in compliance are also discussed.

Summary

The participants note the critical importance of confidentiality and privacy in the development of web 3 infrastructure and its potential to revolutionize how private information is handled in public blockchains.