This is a bigger deal than might appear at first glance. Any computation can be expressed as a Boolean circuit: a series of additions and multiplications. Your computer consists of a zillion Boolean circuits, and you can run programs to do anything on your computer. This algorithm means you can perform arbitrary computations on homomorphically encrypted data. More concretely: if you encrypt data in a fully homomorphic cryptosystem, you can ship that encrypted data to an untrusted person and that person can perform arbitrary computations on that data without being able to decrypt the data itself. Imagine what that would mean for cloud computing, or any outsourcing infrastructure: you no longer have to trust the outsourcer with the data.

Hmmm ... crunchy!