Homomorphic encryption allows specific types of computations to be carried out on ciphertexts and produces an encrypted result which, when decrypted, matches the result of operations performed on the plaintext. There are several types of homomorphic encryption schemes, including partially homomorphic, somewhat homomorphic, and fully homomorphic encryption. Fully homomorphic encryption (FHE) supports arbitrary computations on encrypted data, making it the most versatile but also the most computationally intensive.