What is Zama (ZAMA)?
The Zama Protocol is a confidentiality-focused solution designed to facilitate the issuance, management, and exchange of digital assets on public blockchains while preserving privacy. Rather than functioning as a standalone blockchain, it operates as a cross-chain layer that integrates with existing networks.
The project introduces a confidentiality framework that supports encrypted smart contracts and private transactions. It allows developers to define and manage access to data within decentralized applications, enabling both confidential and non-confidential components to interact. Built using Fully Homomorphic Encryption (FHE), the protocol enables computation on encrypted data, providing end-to-end data privacy. This approach aims to bring default encryption capabilities across blockchain applications.
The native utility token of the protocol is $ZAMA. It is used to pay for protocol-related services such as zero-knowledge proof verifications, ciphertext decryption, and encrypted data bridging across chains. These services are priced in USD but paid in $ZAMA, using an oracle that updates the exchange rate to maintain pricing stability. Developers can also design applications in which end users are not required to hold the token directly, as payments can be abstracted via frontend applications or relayers.
$ZAMA is also used in staking by protocol operators. Those who contribute to running the protocol, such as sequencers or node operators, must stake tokens to be eligible for rewards. These rewards are issued through token inflation, initially set at 5%, and are distributed proportionally based on operator roles and stake contributions.
The Zama project was founded in 2020 by Dr. Rand Hindi, who serves as CEO, and Dr. Pascal Paillier, the Chief Technology Officer. The leadership team also includes Prof. Nigel Smart as Chief Academic Officer and Dr. Marc Joye as Chief Scientist.
The current price of ZAMA is available and updated in real-time on Binance.
