Jul 6, 2025

Zama Testnet Guide: How to Participate in the $130M FHE Protocol.

What is Zama and Why Should You Care?

Zama is an open-source cryptography company building state-of-the-art FHE (Fully Homomorphic Encryption) solutions for blockchain. In simple terms, they're creating technology that allows computations to be performed on encrypted data without decrypting it first - a game-changer for privacy in the blockchain space.


Why Zama Matters Now:

  • Massive Funding: $130M raised at a $1B valuation, putting them in the unicorn club right out of the gate

  • Innovative Technology: Their confidential smart contract protocol (fhEVM) enables encrypted dApps with Solidity

  • Strong Backing: Led by Pantera Capital with participation from Blockchange Ventures and Multicoin Capital

  • Free Participation: Unlike many projects requiring token purchases, Zama's testnet is completely free to join

The team is focused on bringing privacy-preserving technology to multiple blockchains, starting with Ethereum and later expanding to Solana and other networks.

How to Participate in Zama Testnet: Step-by-Step Guide

Let's get you set up on the Zama testnet in just a few minutes:

1. Get Sepolia Testnet Tokens

2. Access the Zama Portfolio Demo

3. Claim Faucet Tokens

  • Look for the faucet option on the Zama portfolio demo

  • Claim your testnet tokens

4. Make Transfers

  • Click the "transfer" button

  • Transfer tokens to any address (even your own works)

5. Shield Your Tokens

  • Navigate to the shield tab

  • Use USDZ to get cUSDZ (confidential USDZ)

6. Complete Guild Quests

  • Visit https://guild.xyz/zama

  • Join the Guild

  • Complete all available quests

  • Make sure you hold 0.1 ETH and have completed 3 transactions on ETH Mainnet to qualify

7. Join the Discord Community

Official Zama Links

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FAQs


What is FHE and why does it matter?

Fully Homomorphic Encryption (FHE) allows computations on encrypted data without decryption first. This brings true privacy to blockchain applications, enabling confidential transactions and smart contracts.


Do I need to hold any tokens to participate?

For the testnet, you don't need to purchase any tokens. However, to complete all Guild quests, you'll need to hold 0.1 ETH and have completed 3 transactions on Ethereum Mainnet.


When will the $ZAMA token launch?

According to their roadmap, the $ZAMA token is scheduled to launch in late Q4 2025.


What chains will Zama support?

Zama will initially launch on Ethereum, then expand to other EVM chains like BSC and Polygon in late 2025, followed by Solana and other non-EVM chains in 2026.


How is Zama different from other privacy solutions?

Zama focuses on FHE technology which allows for confidential smart contracts while maintaining compatibility with existing blockchain infrastructure like Solidity. This approach differs from other privacy solutions that may require specialized languages or completely separate chains.