Homomorphic Encryption: Performing Computations on Encrypted Data

Written By:
Founder & CTO
June 21, 2025

In a world increasingly driven by data, where every interaction, be it financial transactions, healthcare analytics, user behavior monitoring, or AI model training, relies on massive streams of sensitive information, the need for secure data processing has never been more critical. As developers, architects, and engineers, we are constantly balancing two conflicting needs: protecting user privacy and extracting meaningful insights.

Traditional encryption techniques like AES or RSA offer strong guarantees at rest and in transit, but the moment we need to process that data, we have to decrypt it. This creates a dangerous window of vulnerability, especially in cloud environments, zero-trust architectures, edge computing setups, and multi-tenant applications.

Enter Homomorphic Encryption, a revolutionary cryptographic technique that allows computation on encrypted data, producing an encrypted result that, when decrypted, matches the outcome of performing the same computation on the plaintext. This means you can run analytics, perform computations, even train ML models, without ever seeing the raw data.

This blog is your comprehensive developer guide to Homomorphic Encryption.

The Core Concept for Developers

Homomorphic Encryption (often abbreviated as HE) is a form of encryption that allows computations to be performed directly on encrypted data without first decrypting it. In simpler terms, you can take encrypted input, perform math or logic on it, and get an encrypted result. When you decrypt that result, it will be exactly what you would have gotten had you done the operation on the raw, unencrypted data.

This is a radical departure from traditional symmetric or asymmetric encryption models, which require data to be decrypted before it can be processed. And therein lies the power of HE, it ensures data confidentiality during computation.

From a developer’s point of view, this means your backend, cloud services, or third-party compute APIs never need to see the original data. You can work with encrypted integers, floating-point numbers, or even entire datasets, all while maintaining end-to-end privacy.

How It Works Technically

HE schemes are typically built on lattice-based cryptography, which provides resistance against quantum computing attacks. The idea is that ciphertexts are represented in a way that allows certain operations, like addition or multiplication, to be mirrored from the ciphertext domain to the plaintext domain.

For example:

  • Encrypted(5) + Encrypted(3) = Encrypted(8)

  • Encrypted(2) * Encrypted(4) = Encrypted(8)

After computation, you decrypt the result and get 8, just like in plaintext.

The technical implementation involves polynomial rings, modulus arithmetic, noise management, and bootstrapping, but modern libraries abstract most of this complexity away, allowing developers to focus on integration and performance.

Why Homomorphic Encryption Matters for Developers
Rethinking Data Privacy in Compute-Heavy Workflows

In today’s privacy-first and compliance-driven landscape, Homomorphic Encryption gives developers a powerful toolkit to build applications that never compromise on confidentiality. Whether you're building for the cloud, AI, blockchain, or edge computing, HE aligns perfectly with modern architectural principles.

Zero-Trust Computing Paradigm

In a zero-trust model, no part of your infrastructure is inherently trusted, not even your own servers. HE enables this by ensuring that data remains encrypted throughout its lifecycle, including during active computation. You can deploy services on untrusted machines, offload heavy processing to third-party APIs, and still maintain absolute privacy.

Regulatory Compliance Made Simpler

For developers working in healthcare (HIPAA), finance (GLBA), or EU markets (GDPR), ensuring data isn’t mishandled is non-negotiable. Homomorphic Encryption lets you process sensitive data without ever exposing it, thereby reducing compliance risk and simplifying audits.

AI, Analytics, and Edge Use-Cases

HE opens the door to privacy-preserving AI and secure analytics pipelines. You can train models on encrypted datasets or run encrypted inference at the edge, ideal for federated learning, smart healthcare, or real-time risk scoring in finance.

Types of Homomorphic Encryption

Understanding the types of HE is crucial for selecting the right scheme for your project. Each type offers a different balance between capability and performance.

1. Partially Homomorphic Encryption (PHE)

Supports a single operation, either addition or multiplication, repeated indefinitely. Common schemes include RSA (multiplicative) and Paillier (additive). These are ideal for scenarios like:

  • Encrypted vote tallying (addition)

  • Aggregated metrics collection (addition)

  • Token-based access models (multiplication)

Performance: Very fast and lightweight.
Limitation: Only supports one type of operation.

2. Somewhat Homomorphic Encryption (SHE)

Supports a limited number of additions and multiplications, often constrained by a “noise budget.” The more operations you perform, the noisier the ciphertext becomes, eventually requiring a refresh (bootstrapping).

Best suited for:

  • Encrypted machine learning inference

  • Secure signal processing

  • Basic analytics or scoring pipelines

Performance: Slower than PHE but still practical.
Limitation: Fixed computation depth.

3. Fully Homomorphic Encryption (FHE)

Supports unlimited additions and multiplications, allowing you to perform arbitrary computations on encrypted data. This is the holy grail of privacy-preserving compute, enabling full backend workflows to run on sealed data.

Use cases include:

  • Complex encrypted ML models

  • Secure multiparty computation (MPC)

  • Blockchain smart contracts with private state

Performance: Computationally intensive, large ciphertexts.
Limitation: Requires heavy compute unless optimized with hardware acceleration.

Key Benefits of Homomorphic Encryption for Developers
1. True End-to-End Encryption

Unlike traditional methods that decrypt data before computation, HE maintains encryption at all times, at rest, in transit, and in use. This ensures that no part of your system ever handles plaintext, reducing the risk of leaks, breaches, or insider threats.

2. Safe Cloud and API Offloading

You can securely offload workloads to cloud services, edge functions, or third-party APIs without disclosing the underlying data. For example, a healthtech app can perform encrypted BMI calculations on Azure Functions or AWS Lambda without exposing patient records.

3. Enabling Multi-Tenant Security

In multi-tenant SaaS platforms, Homomorphic Encryption ensures that computations across users’ data remain logically isolated and confidential, without resorting to complex sharding or sandboxing. Each tenant's data remains encrypted and segregated, even at the compute level.

4. Transforming AI & ML Workflows

Homomorphic Encryption supports encrypted training and inference, making privacy-preserving machine learning possible. This allows enterprises to train collaborative models across encrypted datasets without centralizing or exposing raw data.

5. Secure Collaborative Computation

Developers can enable secure multiparty computation (MPC) where multiple parties compute jointly on encrypted datasets, generating results without sharing their own data. This is ideal for use-cases like fraud detection or federated analytics across organizations.

6. Future-Proof Against Quantum Threats

HE schemes are lattice-based, inherently providing quantum-resistant encryption. As post-quantum cryptography becomes a pressing concern, integrating HE gives you a future-ready architecture that’s resistant to Shor’s algorithm and similar quantum threats.

Developer Challenges & Mitigations
1. Performance Bottlenecks

FHE is significantly slower than traditional processing, anywhere from 10x to 1000x depending on the operation and scheme. However, newer libraries like Microsoft SEAL, IBM HELib, and Concrete by Zama offer significant speed-ups. You can also leverage hardware acceleration, SIMD batching, and bootstrapping optimizations.

2. Complex Integration

HE often requires redesigning parts of your application logic to support ciphertext-compatible operations. This can be daunting. Start by isolating core computation pipelines (e.g., scoring engines, aggregators) and incrementally migrate them to HE workflows.

3. Ciphertext Growth

Encrypted values are often 10x–100x larger than their plaintext equivalents. This can affect storage, network throughput, and compute latency. Batch processing, compression, and ciphertext packing can help reduce the overhead.

4. Limited Tooling Ecosystem

Unlike AES, where mature SDKs exist in every language, HE is still maturing. Rely on trusted open-source libraries like:

  • Microsoft SEAL (C++, Python, C#)

  • PALISADE (multi-language)

  • TFHE (fast for boolean logic)

  • Concrete (Rust-based, ML-ready)

Comparing Homomorphic Encryption vs Traditional Encryption
Homomorphic Encryption
  • Maintains encryption throughout compute

  • Enables privacy-preserving workflows

  • Ideal for zero-trust and cloud-native apps

  • Larger ciphertext size and compute cost

  • Supports multi-party secure computation

Traditional Encryption
  • Encrypts at rest/in transit, but not during compute

  • Requires trusted compute environment

  • Fast, small ciphertexts

  • Not quantum-resistant

  • Inadequate for untrusted infrastructure

Developer Use Cases: Building with Homomorphic Encryption
Secure Medical Analytics

Process encrypted patient data for BMI, symptom scoring, or anomaly detection in healthcare apps without compromising privacy or violating HIPAA.

Private Financial Modelling

Banks can compute risk scores, credit decisions, or loan qualification logic on encrypted transaction histories, ensuring zero internal data exposure.

Encrypted Voting Systems

Homomorphic tallying of encrypted ballots ensures voter anonymity while allowing accurate, verifiable elections.

Privacy-Preserving Smart Contracts

Blockchain developers can write smart contracts that evaluate encrypted user input, keeping private data out of the public ledger.

How to Get Started
  1. Define Your Computation
    Understand what operations are needed, basic arithmetic, logic, or complex ML?

  2. Choose a Scheme
    Pick from PHE, SHE, or FHE depending on your depth and type of computation.

  3. Select a Library
    Start with Microsoft SEAL or Concrete for modern, developer-friendly interfaces.

  4. Prototype with Sample Data
    Encrypt inputs, run core logic, decrypt output, benchmark and verify.

  5. Tune Performance
    Adjust parameters like modulus size, batch size, and noise budget.

  6. Secure Key Management
    Never store keys in plaintext; use HSM or cloud-based KMS solutions.

  7. Deploy and Monitor
    Use observability tools to measure latency, throughput, and ciphertext size.

Final Thoughts

Homomorphic Encryption marks a new era in how developers think about privacy, data integrity, and secure computing. As tooling matures and performance improves, HE will become as commonplace as AES is today. For developers looking to future-proof their stack, deliver on zero-trust mandates, or unlock the next generation of AI and cloud-native applications, Homomorphic Encryption is not just an option; it’s an imperative.