Solana Startup Arcium Acquires Web2 Competitor Inpher
The Solana-based confidential computing startup Arcium has acquired the Web2 competitor Inpher. This acquisition includes Inpher’s core team and technology, although specific terms were not disclosed. The deal follows Stripe's acquisition of the stablecoin platform Bridge, which has sparked increased interest in mergers and acquisitions within the crypto sector.
Originally launched as a privacy protocol named Elusiv, Arcium rebranded to focus on confidential computing. In May, the company announced a $5.5 million funding round led by Greenfield Capital aimed at enabling developers to create fully confidential applications on-chain. Arcium has yet to launch its product.
CEO Yannik Schrade emphasized the importance of confidential computing, stating that sensitive data often requires decryption, creating a vulnerability for data breaches. He highlighted use cases such as collaborative AI training where confidentiality can reduce risks.
Schrade described Inpher as a research-driven team with significant contributions to cryptography, now enhancing the expertise within the Solana ecosystem. Inpher has raised $14 million since 2016 from investors including JPMorgan and the Amazon Alexa Fund, and it recently began marketing services for private AI interactions.
Confidentiality is fundamental to cryptocurrency, allowing secure transactions among untrusted parties. However, many advanced applications of technologies like zero-knowledge proofs remain unrealized. Schrade aims to bridge practical technology with accessible developer interfaces, moving beyond theoretical research.