Craig Gentry named MacArthur Fellow for work on fully homomorphic encryption
macfound.org
macfound.org
Craig Gentry did more than just discover the first theoretical scheme, he reopened an interest in FHE. Yeah all the schemes are inefficient and will remain so for decades. But already the progress on FHE is incredible.
2007 for FHE was the 1982 for Secure Multi Party Computation. It will take 30 years, but I expect someday we'll see it privately allocating contracts in sugarbeet auctions.
I highly recommend that everyone reads http://csrc.nist.gov/groups/ST/PEC2011/presentations2011/tof...
Crazy stuff.
I read it wrong the first time too.
It was also one of my foremost "I will never ever in my life be as smart as these guys" moments. Alas.
"So the Shieldings' hero, hard-pressed and enraged, took a firm hold of the hilt and swung the blade in an arc, a resolute blow that bit deep into her neck-bone and severed it entirely, toppling the doomed house of her flesh; she fell to the floor. The sword dripped blood, the swordsman was elated. (1563-1569)"
Sometimes the better product makes less profit. It's hard for someone with Capitalistic incentives to respond with a better product if delaying/discouraging/regulating-out-of-existence is cheaper.
I'm aiming at studying Theoretical Cryptography, with an interest in MPC specifically, so this would be right up my alley, but my pessimistic world view tells me that any efforts to create more secure and privacy-preserving services will fail because of institutional opposition and low market demand.
The financial model has to use something like a pay-per-search instead of the usual ad model (although technically even better ads could be served over SMPC!).
If you're interested in studying this you're also probably interested in 1-k Oblivious Transfers (get me a static webpage I request out of a choice of k without revealing which I've requested), in Functional Encryption and also in Securely Obfuscated Programs.
Also, there was a really awesome paper at CRYPTO this year: "How to Use Bitcoin to Design Fair Protocols" (http://eprint.iacr.org/2014/129.pdf)
:)
And there will certainly be many more advances, but if/when functional crypto gets totally sorted out it will change everything.