Confidential Computing significantly enhances data security in cloud environments by encrypting data not just at rest and in transit, but also when in use. This protects against a range of threats, including internal threats from administrators, external hacking attempts, and breaches in multi-tenant environments. It enables secure and private multi-party computation, allowing different parties to collaborate on sensitive data without compromising its privacy or security. This technology is particularly important in scenarios where data confidentiality is paramount, such as in handling sensitive financial, health, or personal information. By ensuring data remains encrypted throughout its lifecycle, confidential computing provides a more robust security posture for cloud-deployed workloads.