Homomorphic encryption is a form of encryption that permits mathematical operations to be performed on encrypted data without first decrypting it. Unlike standard encryption, which requires data to be decrypted before processing—creating a vulnerable window—this scheme ensures that sensitive information remains protected throughout the entire computation lifecycle, from input to output.
Glossary
Homomorphic Encryption

What is Homomorphic Encryption?
Homomorphic encryption is a cryptographic paradigm that enables computation directly on ciphertext, producing an encrypted result that, when decrypted, matches the output of operations performed on the plaintext.
The technology exists in three variants: partially homomorphic encryption (PHE), supporting a single operation type; somewhat homomorphic encryption (SHE), allowing limited operations; and fully homomorphic encryption (FHE), enabling arbitrary computations on ciphertext. FHE remains computationally intensive but is critical for secure cloud processing and privacy-preserving machine learning inference.
Key Features of Homomorphic Encryption
Homomorphic encryption enables computation on ciphertexts, generating an encrypted result that, when decrypted, matches the output of operations performed on the plaintext. This eliminates the need to decrypt sensitive data before processing.
Partially Homomorphic Encryption (PHE)
Supports unlimited operations of a single type—either addition or multiplication, but not both.
- RSA encryption: Multiplicatively homomorphic; ciphertext multiplication yields encrypted product of plaintexts
- Paillier cryptosystem: Additively homomorphic; commonly used in electronic voting and private aggregation
- ElGamal encryption: Multiplicatively homomorphic; foundational for threshold decryption schemes
PHE schemes are computationally efficient and widely deployed in production systems where only one operation type is required.
Somewhat Homomorphic Encryption (SHE)
Supports both addition and multiplication but only for circuits of limited depth. Each operation introduces noise that accumulates, eventually making decryption impossible.
- BGN cryptosystem: Supports one multiplication followed by unlimited additions
- YASHE scheme: Optimized for polynomial evaluation with bounded multiplicative depth
- Ideal lattice-based constructions: Trade circuit depth for smaller ciphertext sizes
SHE is useful for evaluating low-degree polynomials and simple statistical functions where the computation depth is known in advance.
Fully Homomorphic Encryption (FHE)
Supports arbitrary computation on encrypted data with unlimited additions and multiplications. Achieved through a breakthrough construction by Craig Gentry in 2009 using lattice-based cryptography.
- Bootstrapping: A noise-reduction technique that evaluates the decryption circuit homomorphically, resetting noise levels to enable unbounded computation
- Learning With Errors (LWE): The hardness assumption underlying most modern FHE schemes
- Ring-LWE variants: Improve efficiency by operating on polynomial rings rather than matrices
FHE enables general-purpose encrypted computation but incurs significant performance overhead compared to plaintext operations.
Leveled Fully Homomorphic Encryption
A practical variant of FHE that supports circuits of a pre-determined depth without bootstrapping. Parameters are chosen to accommodate the exact multiplicative depth required.
- BGV scheme (Brakerski-Gentry-Vaikuntanathan): Supports packed ciphertexts using Single Instruction Multiple Data (SIMD) operations
- BFV scheme (Brakerski-Fan-Vercauteren): Optimized for integer arithmetic with efficient batching
- CKKS scheme (Cheon-Kim-Kim-Song): Designed for approximate fixed-point arithmetic, ideal for machine learning inference
Leveled FHE is the dominant approach for production applications, avoiding the prohibitive cost of bootstrapping.
Threshold Homomorphic Encryption
Combines homomorphic encryption with distributed key management, requiring multiple parties to collaborate for decryption. No single entity holds the complete private key.
- Threshold decryption: The secret key is split into shares; a minimum quorum must combine partial decryptions
- Multi-party computation (MPC) integration: Enables joint computation where inputs remain private from all participants
- Use case: Secure federated learning where model updates are aggregated homomorphically and only decrypted when sufficient participants contribute
This prevents any single party from unilaterally accessing the plaintext results.
Homomorphic Encryption for Machine Learning
Enables privacy-preserving inference where a model owner can classify encrypted user data without ever seeing the input, and the user learns only the result.
- CryptoNets: Early demonstration of neural network inference on encrypted data using leveled FHE
- nGraph-HE: Intel's compiler framework for homomorphic inference on deep learning models
- Concrete-ML: Open-source toolkit by Zama for converting trained models into FHE-compatible circuits
Key challenge: Non-linear activation functions like ReLU must be approximated as polynomials, introducing accuracy trade-offs.
Frequently Asked Questions
Clear, technically precise answers to the most common questions about performing computation on encrypted data without decryption.
Homomorphic encryption is a cryptographic method that allows computation to be performed directly on encrypted data, generating an encrypted result that, when decrypted, matches the output of operations performed on the plaintext. It works by constructing a mathematical mapping between operations in the plaintext space and operations in the ciphertext space. For example, in a partially homomorphic scheme like RSA, multiplying two ciphertexts yields a ciphertext whose decryption equals the product of the two original plaintexts. Fully Homomorphic Encryption (FHE) extends this to support both addition and multiplication on ciphertexts, enabling arbitrary computation. The core mechanism relies on introducing a small amount of noise into the ciphertext during encryption, which grows with each operation. A technique called bootstrapping, introduced by Craig Gentry in 2009, recursively evaluates the decryption circuit homomorphically to reset this noise, preventing it from overwhelming the signal and enabling unlimited computation depth.
Enabling Efficiency, Speed & Accuracy
Intelligent Analysis, Decision & Execution
We build AI systems for teams that need search across company data, workflow automation across tools, or AI features inside products and internal software.
Talk to Us
Search across company data
Give teams answers from docs, tickets, runbooks, and product data with sources and permissions.
Useful when people spend too long searching or get different answers from different systems.

Automate internal workflows
Use AI to route work, draft outputs, trigger actions, and keep approvals and logs in place.
Useful when repetitive work moves across multiple tools and teams.

Add AI to products and internal tools
Build assistants, guided actions, or decision support into the software your team or customers already use.
Useful when AI needs to be part of the product, not a separate tool.
Related Terms
Homomorphic encryption exists within a broader landscape of privacy-enhancing technologies and cryptographic primitives. Understanding these adjacent concepts is essential for architects designing secure, compliant data processing pipelines.
Fully Homomorphic Encryption (FHE)
The most powerful variant of homomorphic encryption, supporting arbitrary computation (both addition and multiplication) on ciphertexts without any theoretical limit on circuit depth. FHE schemes, such as CKKS and TFHE, rely on lattice-based cryptography and remain computationally intensive. Key characteristics:
- Unlimited sequential operations on encrypted data
- Enables general-purpose programs without decryption
- Bootstrapping refreshes ciphertext noise to enable deep circuits
- Latency measured in seconds to minutes per operation
Partially Homomorphic Encryption (PHE)
A restricted form of homomorphic encryption that supports only one type of operation—either addition or multiplication—but not both. RSA (multiplicative) and Paillier (additive) are classic examples. PHE is significantly faster than FHE and is widely deployed in production:
- Paillier enables encrypted vote tallying and private aggregation
- ElGamal supports multiplicative operations on ciphertexts
- Much lower computational overhead than FHE
- Suitable for single-purpose privacy applications
Somewhat Homomorphic Encryption (SHE)
An intermediate category that supports both addition and multiplication but only for circuits of limited depth. SHE schemes can evaluate low-degree polynomials before noise accumulation renders decryption impossible. They serve as the foundation for many FHE constructions:
- Supports a bounded number of operations
- More efficient than full FHE for shallow computations
- Often used as a building block before bootstrapping is applied
- Ideal for fixed-complexity tasks like private set intersection
Secure Multi-Party Computation (MPC)
A cryptographic protocol where multiple parties jointly compute a function over their private inputs without revealing those inputs to each other. Unlike homomorphic encryption, MPC requires interactive communication between participants. Common techniques include garbled circuits and secret sharing:
- Distributes trust across multiple non-colluding parties
- Often combined with HE for hybrid privacy architectures
- Used in privacy-preserving machine learning and auctions
- Communication overhead scales with circuit complexity
Trusted Execution Environment (TEE)
A hardware-based secure enclave within a CPU that isolates code and data from the host operating system. Intel SGX and AMD SEV provide TEE implementations. Data is decrypted only inside the enclave, offering a complementary approach to cryptographic privacy:
- Hardware root of trust rather than mathematical guarantees
- Significantly faster than FHE for computation
- Vulnerable to side-channel attacks and hardware exploits
- Requires trust in the silicon vendor's implementation
Lattice-Based Cryptography
The mathematical foundation underlying most modern homomorphic encryption schemes. Lattice problems like Learning With Errors (LWE) and Ring-LWE are believed to be resistant to quantum computer attacks. Key properties:
- Post-quantum security guarantees
- Enables noise-based encryption essential for HE
- NIST has standardized lattice-based algorithms (CRYSTALS-Kyber)
- Forms the security basis for CKKS, BGV, and TFHE schemes

About the author
Prasad Kumkar
CEO & MD, Inference Systems
Prasad Kumkar is the CEO & MD of Inference Systems and writes about AI systems architecture, LLM infrastructure, model serving, evaluation, and production deployment. Over 5+ years, he has worked across computer vision models, L5 autonomous vehicle systems, and LLM research, with a focus on taking complex AI ideas into real-world engineering systems.
His work and writing cover AI systems, large language models, AI agents, multimodal systems, autonomous systems, inference optimization, RAG, evaluation, and production AI engineering.
Partnered with leading AI, data, and software stack.
How We Work
Custom AI workflows for your Business
One-fit-all AI don't work for modern businesses. At Inferensys, we aim to understand your business & custom requirements; which we use to define most efficient agentic workflows, the data, and the tools for your business.
01
Review the use case
We understand the task, the users, and where AI can actually help.
Read more02
Pick the right approach
We define what needs search, automation, or product integration.
Read more03
Build the first useful version
We implement the part that proves the value first.
Read more04
Improve from there
We add the checks and visibility needed to keep it useful.
Read moreThe first call is a practical review of your use case and the right next step.
Talk to Us