The Federated Unified Secure Exchange (FUSE) algorithm represents a breakthrough in computer science and cybersecurity, building upon three foundational elements: Homomorphic Encryption, Zero-Knowledge Proofs, and Federated Learning. By deeply integrating these three pillars, FUSE not only guarantees data integrity and privacy in decentralized environments but also maintains high performance and remarkable scalability. This paper details the architecture, mathematical principles, and real-world applications of FUSE across Internet of Things (IoT), healthcare, finance, and supply chains. In addition, it compares FUSE with several “classic” algorithms that have dramatically changed the world—such as QuickSort, RSA, Dijkstra, PageRank, FFT, Backpropagation, SHA, Monte Carlo, Gradient Descent, and Blockchain—highlighting how FUSE addresses existing limitations in data protection and distributed computation.