Fully Homomorphic Encryption (FHE), a privacy-enhancing technology, is about to go mainstream. FHE lets you do calculations on encrypted data, so even if someone intercepts it, they can’t see what’s inside. With hardware improvements, investment pouring in, and industry groups working together, we’re on the verge of seeing the first commercial FHE apps. Here are three trends to watch in 2025:
1. Early Adopters: AI and Blockchain
FHE is perfect for industries needing massive, secure computations. Think artificial intelligence (AI) and blockchain.
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AI: Many companies are hesitant about AI due to security concerns. FHE offers a solution, allowing AI providers to offer ironclad security to their clients.
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Blockchain: Public blockchains are transparent, which can clash with privacy regulations like GDPR and HIPAA. FHE lets you process transactions and smart contracts privately, opening up possibilities like private DeFi (decentralized finance) and private auctions. With a recent surge in crypto interest, investment in blockchain tech will likely boost FHE development even further.
2. Law Enforcement’s Changing Stance on Encryption
Agencies like the FBI have previously warned that widespread encryption makes it harder to investigate crimes. However, recent large-scale cyberattacks, like “Salt Typhoon,” have highlighted the critical need for strong encryption for national security. These attacks showed that perimeter security isn’t enough to protect against massive data breaches.
FHE offers a compromise. It allows law enforcement and regulatory bodies to analyze data for evidence without needing to see the sensitive information itself. This could prevent overly broad searches while still allowing for investigations of serious crimes.
3. Collaboration is Key
The days of “security by obscurity” are over. Successful FHE solutions will come from open collaboration, not just secretive development. Open development helps find flaws early and prevents vulnerabilities from being exploited after widespread adoption. Think of past security issues like Spectre and Meltdown – open review could have prevented those.
The development of FHE also needs to be inclusive. Google’s “Privacy Sandbox” initiative, aimed at improving online privacy, faced pushback due to concerns about potential bias. This shows how important it is for FHE hardware and software providers, and users, to work together on standards and best practices. Several industry groups are already doing this, focusing on interoperability, optimization, and more. While still early, expect rapid progress in 2025 as we see real-world benefits emerge.
