Fully Homomorphic Encryption (FHE) is a type of encryption that allows computations to be performed on encrypted data without needing to decrypt it first. This means that sensitive information can remain secure while still being processed, enabling privacy-preserving data analysis and secure cloud computing. FHE works by transforming data into a form that can be manipulated mathematically while still being encrypted. The results of these computations are also encrypted, and only the owner of the data can decrypt the final output. This technology has potential applications in fields like healthcare, finance, and machine learning, where data privacy is crucial.