Homomorphic encryption is a type of encryption that allows computations to be performed on encrypted data without needing to decrypt it first. The unique aspect of this method is that the results of the computations, when decrypted, match the results as if the operations had been performed directly on the original unencrypted data. This capability enables secure data processing, allowing sensitive information to be handled by third parties or in untrusted environments without exposing the actual data. Homomorphic encryption is particularly valuable in scenarios like cloud computing, where data privacy is critical, as it allows for operations like searching, sorting, or analyzing data while keeping the data itself protected from exposure.