Inferensys

Glossary

Homomorphic Encryption

A cryptographic method enabling computation directly on encrypted data, generating an encrypted result that, when decrypted, matches the output of operations performed on the plaintext.
Data scientist building training data pipeline on laptop, data preprocessing visible, technical workspace.
PRIVACY-PRESERVING COMPUTATION

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.

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.

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.

PRIVACY-PRESERVING COMPUTATION

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.

01

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.

< 1 ms
Typical Operation Latency
02

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.

10-50x
Ciphertext Expansion Factor
03

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.

10⁶x
Slowdown vs Plaintext
04

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.

CKKS
ML-Focused Scheme
05

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.

t-of-n
Threshold Structure
06

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.

99%+
Accuracy Preservation
HOMOMORPHIC ENCRYPTION FAQ

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.

Prasad Kumkar

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.