Definition ∞ Homomorphic data processing permits computations to be performed on encrypted data without decrypting it first. This cryptographic technique maintains data privacy during processing, as the results of the computation remain encrypted. It offers a powerful solution for privacy-preserving data analysis and cloud computing.
Context ∞ Homomorphic data processing holds significant promise for enhancing privacy in decentralized applications and sensitive digital asset operations. While computationally intensive, ongoing research aims to improve its efficiency and practicality for real-world blockchain use cases. Its application could enable private smart contract execution and secure data sharing across networks.