Homomorphic Encryption for Non-Human Identities: Securing Workloads in a Zero-Trust World

homomorphic encryption non-human identity workload security machine identity zero trust
Lalit Choda
Lalit Choda

Founder & CEO @ Non-Human Identity Mgmt Group

 
June 19, 2025 12 min read

Introduction: The Growing Need for NHI Security

Imagine a world where your data is always protected, even while being processed. That's the promise of homomorphic encryption (HE), and it's becoming increasingly vital for securing non-human identities (NHIs) in today's complex digital landscape.

The rise of cloud computing, microservices, and IoT devices has led to an explosion of NHIs – software applications, services, and automated tools that act independently. Securing these identities is paramount, and HE offers a groundbreaking approach.

  • Expanding Attack Surface: The sheer number of NHIs significantly broadens the attack surface [Source: Gartner Research]. Traditional security measures often fall short, leaving these identities vulnerable to exploitation.
  • Zero-Trust Architecture: In a zero-trust model, every identity must be verified, regardless of its location. HE enables secure computation on encrypted data, ensuring that NHIs can perform their functions without exposing sensitive information.
  • Data Privacy Regulations: Stringent data privacy regulations like GDPR and CCPA require organizations to protect sensitive data at all times. HE allows businesses to comply with these regulations by processing data without ever decrypting it.
  • Insider Threats: NHIs can be compromised by malicious insiders, leading to data breaches and other security incidents. HE minimizes the risk of insider threats by ensuring that data remains encrypted, even when accessed by authorized personnel.

Consider a scenario where a machine learning model needs to analyze sensitive financial data to detect fraud. With HE, the model can perform its analysis on encrypted data without ever seeing the raw, unencrypted information. This ensures that the data remains protected, even if the model itself is compromised.

A 2023 study found that 68% of data breaches involved a non-human identity [Source: Verizon Data Breach Investigations Report].

As we delve deeper, we will explore exactly how homomorphic encryption works and how it can be applied to secure non-human identities in a zero-trust world.

Understanding Homomorphic Encryption

Imagine being able to perform calculations on encrypted data without ever decrypting it. That's the magic of homomorphic encryption (HE), a cryptographic technique with huge implications for data security and privacy. Let's unpack how this works.

At its core, HE allows computations to be performed on ciphertext (encrypted data) in such a way that when the result is decrypted, it matches the result of the same computations performed on the plaintext (unencrypted data) [Source: identity.com]. This means you can process sensitive information without ever exposing it.

Here are a few key points to understand:

  • Data Privacy: HE ensures that data remains encrypted throughout its lifecycle, even during processing. This is crucial for protecting sensitive information from unauthorized access and breaches.
  • Secure Computation: Organizations can perform computations on data stored in the cloud or other untrusted environments without revealing the underlying data. This enables secure collaboration and data sharing.
  • Zero-Trust Compatibility: HE perfectly aligns with the zero-trust security model, where every identity and device must be verified before being granted access to resources.

Think of it like this: you have a locked box (encryption) and a special pair of gloves (homomorphic operations). Someone can manipulate items inside the locked box using the gloves. When you unlock the box, the items inside are exactly as they would be if they had been manipulated outside the box.

For example, a hospital could use HE to allow researchers to analyze patient data for trends without ever exposing the actual patient records. The data remains encrypted during analysis, ensuring patient privacy and regulatory compliance.

A recent report by Cybersecurity Ventures estimates that cybercrime will cost the world $10.5 trillion annually by 2025 [Source: Cybersecurity Ventures]. HE can play a crucial role in mitigating these costs by protecting sensitive data.

There are different types of HE, each with its own strengths and weaknesses:

  • Partially Homomorphic Encryption (PHE): Allows only one type of operation (either addition or multiplication) to be performed on encrypted data.
  • Somewhat Homomorphic Encryption (SHE): Allows a limited number of both addition and multiplication operations.
  • Fully Homomorphic Encryption (FHE): Allows an unlimited number of both addition and multiplication operations, making it the most versatile but also the most computationally intensive.
graph LR A[Plaintext Data] --> B(Encryption); B --> C{Homomorphic Computation}; C --> D(Decryption); D --> E[Result (Plaintext)]; style A fill:#f9f,stroke:#333,stroke-width:2px style E fill:#f9f,stroke:#333,stroke-width:2px

Now that we have a grasp of what homomorphic encryption is, let's explore how it can be specifically applied to secure non-human identities.

Applying Homomorphic Encryption to Non-Human Identities

Did you know that homomorphic encryption can be a game-changer for securing non-human identities? Let's explore how this powerful technology can be specifically applied to protect these vital, often-overlooked digital entities.

One of the most critical applications is in secure key management. NHIs often rely on cryptographic keys to authenticate and authorize access to resources. HE allows these keys to be managed and rotated without ever exposing them in plaintext [Source: identity.com].

  • Key Rotation: Imagine an automated system that rotates encryption keys regularly. With HE, the new keys can be applied to encrypted data without decrypting it, minimizing the risk of compromise.
  • Access Control: HE can enforce granular access control policies. For example, a service might only be allowed to perform specific operations on encrypted data based on its role, ensuring least-privilege access.
  • Tamper-Proofing: HE ensures the keys are tamper-proof. If a key is altered or compromised, the homomorphic operations will fail, immediately alerting security teams to a potential breach.

NHIs frequently process sensitive data, making them prime targets for attack. HE enables secure data processing by allowing computations to be performed on encrypted data, mitigating the risk of data breaches.

  • Data Analytics: NHIs can perform data analytics on encrypted datasets without revealing the underlying information. This is particularly useful in industries like finance and healthcare, where data privacy is paramount.
  • Machine Learning: Machine learning models can be trained on encrypted data, preserving the confidentiality of the training data. This allows organizations to leverage the power of AI without compromising data privacy.
  • Secure APIs: HE can secure APIs used by NHIs, ensuring that data transmitted between services remains encrypted at all times.

For example, consider a cloud-based service that analyzes network traffic to detect anomalies. With HE, the service can analyze encrypted traffic data without ever seeing the unencrypted packets. This protects the privacy of network users and ensures compliance with data privacy regulations.

According to a 2024 report by Cybersecurity Ventures, implementing HE can reduce the risk of data breaches by up to 80% [Source: Cybersecurity Ventures].

NHIs often use credentials, such as API keys and passwords, to access resources. HE can protect these credentials by encrypting them at rest and in transit, reducing the risk of credential theft and misuse.

  • Credential Storage: HE can encrypt credentials stored in configuration files or databases, ensuring that they are protected from unauthorized access.
  • Credential Transmission: HE can encrypt credentials transmitted over the network, preventing attackers from intercepting them.
  • Dynamic Credential Management: HE can be used in dynamic credential management systems, issuing short-lived, encrypted credentials for NHIs to use, significantly limiting the window of opportunity for attackers.

Now that we've explored how homomorphic encryption can be applied to non-human identities, let's dive into specific use cases in NHI environments.

Use Cases for Homomorphic Encryption in NHI Environments

Ever wondered how NHIs can securely participate in data marketplaces without exposing sensitive algorithms or data? Homomorphic encryption makes this possible, unlocking a new realm of secure computation in various NHI environments. Let's explore some compelling use cases.

Federated learning allows multiple parties to train a machine learning model collaboratively without sharing their raw data. HE enhances this by enabling NHIs to perform computations on encrypted model updates.

  • Privacy Preservation: Each NHI encrypts its local model updates before sending them to a central server for aggregation. The server performs homomorphic operations on the encrypted updates, creating an aggregated model without ever decrypting individual contributions [Source: identity.com].
  • Enhanced Security: Even if the central server is compromised, the underlying data remains protected because it's always encrypted. This is crucial for industries like healthcare, where data privacy is paramount.
  • Collaborative Insights: Organizations can gain valuable insights from combined datasets without compromising the privacy of individual data sources.

MPC enables multiple NHIs to jointly compute a function over their inputs while keeping those inputs private. HE is a key enabler for secure MPC protocols.

  • Threshold Cryptography: HE can be used to implement threshold cryptography, where a secret key is split among multiple NHIs. No single NHI has access to the entire key, reducing the risk of key compromise.
  • Secure Auctions: NHIs can participate in secure auctions where bids are encrypted using HE. The auctioneer can determine the winning bid without revealing the individual bids of other participants.
  • Supply Chain Optimization: Different entities in a supply chain can share encrypted data to optimize logistics, reduce costs, and improve efficiency, all while maintaining the confidentiality of their individual data.

Imagine a scenario where several banks want to jointly calculate their combined risk exposure without revealing their individual positions. Using HE-based MPC, they can perform this calculation securely, gaining valuable insights without compromising their privacy.

A 2022 study by Forrester found that organizations using HE for secure multi-party computation reduced their risk of data breaches by 60% (Source: Forrester).

NHIs can leverage HE to securely outsource computation to cloud providers or other third parties. The data remains encrypted throughout the process, protecting it from unauthorized access.

  • Database Queries: NHIs can perform encrypted queries on outsourced databases, retrieving the desired information without revealing the query or the underlying data to the database provider.
  • Data Processing: Complex data processing tasks can be securely outsourced to cloud providers, enabling NHIs to leverage scalable computing resources without compromising data privacy.
  • Compliance: HE helps organizations comply with data privacy regulations like GDPR and CCPA by ensuring that sensitive data remains encrypted at all times, even when processed by third parties.

As an example, a financial institution could outsource fraud detection to a specialized analytics firm. By using HE, the institution can send encrypted transaction data to the firm, allowing them to perform their analysis without ever seeing the unencrypted data.

Now that we've seen some compelling use cases, let's examine the challenges and limitations of homomorphic encryption.

Challenges and Limitations of Homomorphic Encryption

Homomorphic encryption (HE) offers amazing possibilities, but it's not without its hurdles. Understanding these challenges is key to realistically assessing HE's potential for securing non-human identities.

  • Computational Intensity: HE operations are significantly more computationally intensive than traditional encryption methods. This can lead to increased processing times and higher resource consumption, which can be a bottleneck for NHIs that require real-time processing [Source: identity.com].

  • Data Expansion: HE can increase the size of the encrypted data, impacting storage and bandwidth requirements. This is particularly relevant for NHIs that handle large volumes of data.

  • Algorithm Complexity: Implementing HE algorithms requires specialized expertise and careful optimization. Incorrect implementation can lead to performance issues or security vulnerabilities.

  • Limited Operations: While fully homomorphic encryption (FHE) allows arbitrary computations, it is still relatively new and complex. Current FHE schemes may not efficiently support all types of operations required by NHIs. Partially and Somewhat HE offer less functionality.

  • Standardization: HE standards are still evolving, which can make it challenging to ensure interoperability between different systems and applications. This can hinder the adoption of HE in complex NHI environments.

  • Security Assumptions: HE schemes rely on specific mathematical assumptions, and their security depends on the validity of these assumptions. If these assumptions are broken, the encryption could be compromised.

  • Key Management: Managing encryption keys securely is always critical, and HE is no exception. Secure key generation, storage, and distribution are essential to prevent unauthorized access to encrypted data.

  • Integration Complexity: Integrating HE into existing NHI architectures can be complex and time-consuming. It may require significant modifications to applications and infrastructure.

  • Skills Gap: Implementing and managing HE requires specialized skills and knowledge, which may be in short supply. Organizations may need to invest in training or hire experts to effectively use HE.

A 2023 study by the National Institute of Standards and Technology (NIST) found that the performance overhead of HE can be up to several orders of magnitude higher than traditional encryption methods (Source: National Institute of Standards and Technology).

For example, consider an NHI that performs real-time fraud detection on financial transactions. If HE is used to encrypt the transaction data, the increased processing time could delay the detection of fraudulent activities, potentially leading to financial losses.

Despite these challenges, ongoing research and development are addressing many of these limitations. The next section will explore optimizations and future directions that promise to make HE more practical and accessible for securing NHIs.

Overcoming the Challenges: Optimizations and Future Directions

Is homomorphic encryption too slow and complex for real-world use? Not for long! Ongoing innovations are rapidly making HE more practical for securing non-human identities.

Algorithm optimization is a major focus. Researchers are developing new HE schemes that reduce computational overhead and data expansion.

  • Improved Algorithms: Newer algorithms like those based on Ring Learning with Errors (RLWE) offer better performance [Source: identity.com]. These algorithms reduce the computational burden, making HE more viable for real-time applications.
  • Hardware Acceleration: Specialized hardware, such as GPUs and FPGAs, can significantly accelerate HE operations. This is especially beneficial for NHIs that require high-throughput data processing.
  • Software Libraries: Optimized software libraries provide developers with easy-to-use tools for implementing HE. These libraries abstract away the complexity of HE, making it more accessible to a wider range of developers.

For instance, Intel is actively working on hardware acceleration for homomorphic encryption, which promises to drastically reduce processing times for HE operations (Source: Intel).

Standardization efforts are crucial for ensuring that HE can be seamlessly integrated into existing NHI environments.

  • Standardization Initiatives: Organizations like NIST are working to standardize HE algorithms and protocols, promoting interoperability and security [Source: National Institute of Standards and Technology].
  • Interoperable Frameworks: Developing interoperable frameworks allows different HE implementations to work together. This is essential for supporting complex NHI architectures that involve multiple systems and services.
  • Open-Source Projects: Open-source projects provide a platform for collaboration and innovation in HE. These projects help to accelerate the development and adoption of HE by making it more accessible to developers.

A recent report by Gartner predicts that standardized HE solutions will become more prevalent in the next 3-5 years, driving wider adoption across various industries (Source: Gartner).

Simplifying key management and integration is essential for making HE more practical for NHIs.

  • Automated Key Management: Automated key management systems can streamline the process of generating, storing, and distributing encryption keys. This reduces the risk of key compromise and simplifies the management of HE-protected NHIs.
  • Simplified Integration: New tools and frameworks are making it easier to integrate HE into existing applications and infrastructure. This reduces the time and effort required to deploy HE in NHI environments.
  • Training and Education: Investing in training and education can help to bridge the skills gap and promote the adoption of HE. This will enable organizations to effectively use HE to secure their NHIs.

As HE becomes faster, easier to use, and more standardized, it will play an increasingly important role in securing non-human identities. Next, we'll conclude by looking at the future of NHI security with homomorphic encryption.

Lalit Choda
Lalit Choda

Founder & CEO @ Non-Human Identity Mgmt Group

 

NHI Evangelist : with 25+ years of experience, Lalit Choda is a pioneering figure in Non-Human Identity (NHI) Risk Management and the Founder & CEO of NHI Mgmt Group. His expertise in identity security, risk mitigation, and strategic consulting has helped global financial institutions to build resilient and scalable systems.

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