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This lecture covers the concept of homomorphic encryption, which allows computations to be performed on encrypted data without decrypting it. It explains the difference between symmetric and asymmetric homomorphic encryption, the importance of homomorphism between ciphertext and plaintext spaces, and examples like the Paillier cryptosystem. The instructor also discusses malleability in cryptosystems and how homomorphic cryptosystems are malleable by nature. The lecture emphasizes the practical applications of homomorphic encryption, such as secure medical clouds for processing sensitive data while preserving privacy.