Which encryption technique permits users to perform computations on encrypted data?

Homomorphic encryption is a unique encryption method that allows users to perform computations on ciphertexts, generating an encrypted result that, when decrypted, matches the result of operations performed on the plaintext. This technique is particularly valuable because it maintains the privacy of data while allowing for operations such as addition and multiplication to be conducted without the need to decrypt the data first.

Homomorphic encryption is increasingly important in fields like cloud computing and confidential information processing, where sensitive data needs to be processed without exposing it to potential vulnerabilities. It ensures that while operations are being performed on the data, the underlying information remains encrypted and secure.

In contrast, symmetric encryption involves a single key for both encryption and decryption, making it unsuitable for performing operations on encrypted data because it would require decryption first. Asymmetric encryption uses a pair of keys (public and private), which offers secure data transmission but also doesn't support direct computations on encrypted data. Hashing is primarily used for integrity verification rather than enabling operations on data, as it produces a fixed-size output from input data and is a one-way function.

The unique capability of homomorphic encryption distinguishes it as the correct answer for this question.