Fully homomorphic encryption refers to an encryption type, where the computation of data takes place while being encrypted. The sole purpose is to compute with ciphertexts so that the data doesn’t require decryption in the intermediate steps.
Fully homomorphic data (FHE) is extremely important while working on cloud computing or big data analysis, which often requires working on large sensitive or proprietary information. This restricts any third-party intervention whatsoever.
FHE has an advantage over traditional computing, that even with an encryption key, it can easily compute on the plaintext, without the need for deciphering it. Although FHE is still at its early stage and requires further research till it can be used extensively.