Homomorphic Encryption

Encryption that lets computations run directly on encrypted data, producing an encrypted result that decrypts to the correct answer — the server never sees the plaintext. Fully homomorphic encryption (FHE) enables confidential smart contracts on transparent chains (Zama's fhEVM, Fhenix). It is real but historically very slow (bootstrapping overhead); blockchain systems pair it with threshold decryption so no single party holds the key.