I have a really wacky idea I just came up with for tinychain. Has anyone attempted FHE agents with internal state? Imagine an FHE bridge that owns addresses on bitcoin and tinychain. Can't steal the funds because the FHE circuit custodies the private key
This is different to tECDSA which relies on secret sharing. What if an FHE circuit generates an ECDSA key and stores it in its internal state, and has functions that allow it to produce signatures for different chains?
I had a look I can't seem to find anyone who's done this yet
This tool, even if it hallucinates sometimes, it so so so useful

@levs57 Ah. Replying to your og point -
@levs57 I hope you don't mind I'll use ChatGPT to summarise it
@levs57 It’s a sealed-state FHE state machine. Each call takes Enc(prev_state) and public inputs, runs a fixed program, and returns Enc(next_state) plus any outputs. The internal state is never decrypted—just homomorphically updated and carried forward across invocations.
The program has two functions: initialise (generates a private key inside the state, once) and sign (uses that key to produce signatures). Inputs like function invocations are public. Outputs like signatures are revealed. The private key never leaves the circuit—no parties, no liveness
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