This type of encryption allows operations to be performed on encrypted data.
Imagine a scenario where the data is sent to a cloud server for processing.
Computing on Encrypted Data Without Decrypting It (Part 2)
The server processes it and returns the output without knowing anything about the data that it has processed.
This is also an area ripe for research and fully homomorphic encryption that allows all operations on encrypted data is still not fully deployable in production; however, major progress in this field has already been made.
Once implemented on blockchains, it can allow processing on ciphertext which will allow privacy and confidentiality of transactions inherently.
data stored on the blockchain can be encrypted using homomorphic encryption and computations can be performed on that data without the need for decryption, thus providing privacy service on blockchains.
This concept has also been implemented in a project named Enigma which is available online at ( ) by MIT’s Media https://www.media.mit.edu/projects/enigma/overview/ Lab.
Enigma is a peer-to-peer network which allows multiple parties to perform computations on encrypted data without revealing anything about the data.
Why This Matters for Blockchain Technology
Original research is
Key Points to Remember
- Homomorphic encryption This type of encryption allows operations to be performed on encrypted data.
- Imagine a scenario where the data is sent to a cloud server for processing.
- The server processes it and returns the output without knowing anything about the data that it has processed.
- This is also an area ripe for research and fully homomorphic encryption that allows all operations on encrypted data is still not fully deployable in production; however, major progress in this field has already been made.
Conclusion
Homomorphic encryption represents one of the many innovative layers that make blockchain technology so powerful and transformative. As distributed systems continue to evolve, a solid understanding of these core concepts becomes increasingly valuable — not just for developers, but for anyone building, investing in, or working alongside blockchain-powered systems.
Whether you are just starting your blockchain journey or deepening existing expertise, mastering these fundamentals gives you the tools to think clearly about decentralized systems and make smarter decisions in this rapidly evolving space.