Homomorphic encryption is a type of encryption that allows computations to be performed on encrypted data without needing to decrypt it first. This means that data can be processed and analyzed while still remaining secure and private. The results of these computations, when decrypted, match the results that would have been obtained if the operations were performed on the unencrypted data.

For example, if you have two encrypted numbers, you can add or multiply them while they are still encrypted, and the outcome, once decrypted, will be the same as if you had added or multiplied the original numbers directly. This property makes homomorphic encryption highly valuable for scenarios where sensitive data needs to be processed, such as in cloud computing, secure voting systems, and privacy-preserving data analysis.