We present a novel approach to fully homomorphic encryption (FHE) that dramatically improves performance and bases security on weaker assumptions. A central conceptual contribution in our work is a new way of constructing leveled fully homomorphic encryption schemes (capable of evaluating arbitrary polynomial-size circuits), without Gentry's bootstrapping procedure. Specifically, we offer a choice of FHE schemes based on the learning with error (LWE) or ring-LWE (RLWE) problems that have 2 λ security against known attacks. For RLWE, we have: • A leveled FHE scheme that can evaluate L-level arithmetic circuits with·(λ · L 3) per-gate computation - i.e., computation quasi-linear in the security parameter. Security is based on RLWE for an approximation factor exponential in L. This construction does not use the bootstrapping procedure. • A leveled FHE scheme that uses bootstrapping as an optimization, where the per-gate computation (which includes the bootstrapping procedure) is ·(λ 2), independent of L. Security is based on the hardness of RLWE for quasi-polynomial factors (as opposed to the sub-exponential factors needed in previous schemes). We obtain similar results to the above for LWE, but with worse performance. Based on the Ring LWE assumption, we introduce a number of further optimizations to our schemes. As an example, for circuits of large width - e.g., where a constant fraction of levels have width at least λ - we can reduce the per-gate computation of the bootstrapped version to·(λ), independent of L, by batching the bootstrapping operation. Previous FHE schemes all required Ω(λ 3.5) computation per gate. At the core of our construction is a much more effective approach for managing the noise level of lattice-based ciphertexts as homomorphic operations are performed, using some new techniques recently introduced by Brakerski and Vaikuntanathan (FOCS 2011). © 2012 ACM.