Fairblock, a transaction privacy protocol, has raised USD 2.5 million in pre-seed funding led by Galileo, with participation from Lemniscap, Dialectic, Robot Ventures, GSR, Chorus One, Dorahacks, and Reverie, among others.

The company will use the funding to support the development of its blockchain-based conditional encryption technology, which enables users to execute transactions without revealing any on-chain information until pre-defined conditions are met.

The company plans to launch the product as a software development kit (SDK), which can be integrated into the front-end of DeFi applications for use cases, such as sealed-bid auctions, private governance, and encrypted limit orders. The company leverages cryptographic techniques, such as identity-based encryption and witness encryption, and plans to incorporate homomorphic encryption to enable computations on fully encrypted data.