Fully Homomorphic Encryption is one of the most powerful emerging cryptographic technologies, enabling computations on encrypted data without requiring any decryption. This makes it a major breakthrough for privacy-preserving smart contracts, encrypted DeFi, confidential institutional finance, and secure on-chain computation. Compared to ZK-proofs and MPC, FHE offers unique strengths in non-interactive encrypted computation, though it currently faces performance limitations. As hardware, algorithms, and hybrid architectures improve, FHE is increasingly viewed as a foundational technology for the next generation of private, secure, and compliant blockchain systems.