Homomorphic encryption is a groundbreaking cryptographic technique that allows computations to be performed on encrypted data without needing decryption, thereby maintaining data privacy and security. This technology is particularly significant as it addresses the limitations of traditional encryption, which requires data to be decrypted before analysis and computation, exposing it to third parties. Homomorphic encryption enables secure computations in various fields, such as artificial intelligence, cloud computing, regulatory compliance, voting, and supply chain management, by allowing encrypted data to be processed without revealing raw information. There are several types of homomorphic encryption, ranging from partially to fully homomorphic, each with varying capabilities and limitations in performing complex computations. Despite its potential, fully homomorphic encryption remains computationally expensive, but ongoing research aims to enhance its scalability and cost-effectiveness. The integration of homomorphic encryption with transformative technologies like Web3 and AI could further amplify its impact, offering secure and reliable computation on encrypted data in decentralized environments.