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FTR, hcrypt predates indistinguishability obfuscation by a couple of years. As far as I can tell this really is a straightforward VM working with homomorphically-encrypted opcodes and data, and not an implementation of Garg and friends's work.

Theoretically speaking, I doubt this method holds: there is no theoretical analysis of it at all in the papers to support it. It certainly doesn't hold in the virtual blackbox model, which is what the theorem alluded above assumes.

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