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**fhEVM** enables **privacy-preserving smart contracts** on **EVM-compatible blockchains**. This hands-on guide will walk you through **understanding, setting up, and working with fhEVM** to develop encrypted smart contracts.
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This hands-on guide will walk you through **understanding, setting up, and working with fhEVM** to develop encrypted smart contracts and test them on fhEVM network.
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### What You’ll Learn
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- Basics of **fhEVM and its architecture**.
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- Setting up a **local fhEVM development environment**.
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- Writing, compiling, and deploying **FHE-enabled Solidity contracts**.
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- Basics of fhEVM and its architecture.
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- Setting up a local fhEVM development environment.
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- Writing, compiling, and deploying FHE-enabled Solidity contracts.
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- Testing encrypted contract interactions.
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### **What's Next?**
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Now that you understand the **fhEVM architecture**, let's set up an **fhEVM network**.
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Now that you understand the **fhEVM architecture**, let's set up an **fhEVM network**.
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➡ Move on to **[Network Setup](./setting-up-network.md)** to learn how to proceed.
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## **3. Setting Up Your Development Environment**
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Before writing encrypted contracts, install the necessary tools.
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id: prerequisites
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title: Prerequisites
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description: This guide walks you through configuring your development setup, ensuring seamless interaction with the FHEVM network for encrypted smart contract execution
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description: This guide walks you through configuring your development setup, ensuring seamless interaction with the fhEVM network for encrypted smart contract execution
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id: setting-up-network
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title: Setting Up Network
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description: This guide walks you through configuring your development setup, ensuring seamless interaction with the FHEVM network for encrypted smart contract execution
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description: This guide walks you through configuring your development setup, ensuring seamless interaction with the fhEVM network for encrypted smart contract execution
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# Writing Smart Contracts for the FHEVM
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# Writing Smart Contracts for the fhEVM
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The FHEVM environment enables Fully Homomorphic Encryption (FHE) computations directly on encrypted data within Ethereum-like smart contracts. This means that the contract can store, process, and manipulate data in ciphertext form without ever exposing the underlying cleartext values. As a result, developers can build decentralized applications that protect user privacy on a public blockchain.
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The fhEVM environment enables Fully Homomorphic Encryption (FHE) computations directly on encrypted data within Ethereum-like smart contracts. This means that the contract can store, process, and manipulate data in ciphertext form without ever exposing the underlying cleartext values. As a result, developers can build decentralized applications that protect user privacy on a public blockchain.
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This is a simple example of an ERC20 token smart contract. For writing more complex contracts, please refer to the [fhEVM documentation](https://docs.zama.ai/fhevm/0.5-4/guides) for more details.
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