Definition ∞ Ciphertext processing involves performing operations on encrypted data without decrypting it. This technique allows computations to occur directly on data in its obscured form, preserving its confidentiality throughout the entire process. Such processing prevents exposure of sensitive information to unauthorized entities, even during computation by a third party. It represents a significant advance in data privacy for digital systems.
Context ∞ The application of ciphertext processing, particularly homomorphic encryption, is gaining prominence in decentralized finance and cloud computing. Discussions often center on its potential to enable private transactions and secure data analysis on public blockchains. Future developments will likely focus on improving its computational efficiency for broader practical deployment.
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