Fully homomorphic encryption (FHE) enables computations on encrypted data, revolutionizing decentralized computing and data privacy in blockchain. Its potential shines in secure DeFi applications and private smart contracts, where sensitive data remains confidential. Projects integrating FHE could see rising adoption as privacy demands grow. Investment opportunities lie in early-stage FHE-blockchain ventures, though high development costs and slow execution pose risks. Focus on teams with strong technical expertise and clear use cases for long-term gains.