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 sensitive information can remain secure while still being processed, enabling privacy-preserving data analysis and operations. This technology is particularly useful in fields like cloud computing and data privacy, where users want to keep their data confidential while still utilizing powerful external resources. By using homomorphic encryption, organizations can protect user data from unauthorized access while still gaining valuable insights from it.