Homomorphic encryption is a form of encryption that allows computations to be performed on ciphertexts without needing to decrypt them first. This means that data can remain encrypted while still being processed, ensuring privacy and security.In practical use, a user can send encrypted data to a server, which can then perform operations on this data and return the results, also in encrypted form. The user can later decrypt the results to reveal the final outcome without exposing the original data to the server.This approach is particularly valuable for ensuring confidentiality, especially in scenarios involving sensitive information. Users can maintain privacy while still leveraging external computing resources.Homomorphic encryption is increasingly relevant in various applications, including secure cloud computing and privacy-preserving decentralized finance. By allowing computations on encrypted data, it opens up new possibilities for secure transactions and data sharing, minimizing the risks of data breaches or misuse.