Fully Homomorphic Encryption

Definition ∞ Fully Homomorphic Encryption (FHE) is an advanced cryptographic technique that allows computations to be performed on encrypted data without decrypting it first. This means data can be processed in a secure, private manner, even by untrusted third parties. FHE has the potential to revolutionize data privacy and security in digital systems, enabling secure cloud computing and private data analysis. It represents a significant advancement in cryptographic capabilities. Context ∞ The relevance of Fully Homomorphic Encryption in the digital asset space is growing, particularly concerning privacy-preserving transactions and secure data handling on blockchains. News may cover research breakthroughs, the development of FHE-enabled protocols, or its potential application in decentralized identity solutions. As data privacy becomes a paramount concern, FHE is seen as a critical technology for building more secure and trustworthy decentralized applications and services, especially those handling sensitive financial information.