What is an FHE (Fully Homomorphic Encryption)?

Fully Homomorphic Encryption (FHE) is a cryptographic method that allows computations to be performed on encrypted data without needing to decrypt it. This ensures that sensitive data can be processed while remaining private, preventing exposure during analysis. FHE has significant potential in blockchain applications that require privacy-preserving computations, such as confidential financial transactions or private data analytics. It is considered a breakthrough in cryptography, though it remains computationally intensive and has yet to see widespread adoption.