Jevon's Paradox and FHE

Jevon's paradox is an economic principle that states that when technological advancements increase the efficiency with which a resource is used, the overall consumption of that resource may increase rather than decrease.

For example, in making cars more fuel-efficient, we are practically lowering the cost per mile, which results in people actually driving more.

What's interesting is that the increased efficiency makes the resource cheaper and more accessible, leading to new applications and higher demand that can outpace the efficiency gains.

I believe we're in the first innings of witnessing something similar with respect to Fully Homomorphic Encryption (FHE).

In the next 6 months, we're going to see the first revenue-generating, business application of FHE, solving a real pain point for crypto companies that is costing them hundreds of millions of dollars annually. Although this application will be specific and what some may call 'niche', it will be scalable - potentially worth tens of millions in revenue.

This productization of FHE will allow us to further unlock more performance gains and cost savings (even fund specialized hardware) to make FHE overall more performant. All of which ultimately will allow us to further deploy FHE in more new applications, solving other bigger real-world problems that are too performance or cost-sensitive today.