(I'm a former Dropbox employee who worked on related things, though not specifically the linked paper)
(I'm a former Dropbox employee who worked on related things, though not specifically the linked paper)
Edit: That's what I get for commenting before reading the paper. They literally mention deduplication in there.
This makes me believe there is no problem for Dropbox to read content in clear.
I think that's still far from being possible in practice. IIRC, the best homomorphic encryption can do now is to run simple queries on very small datasets, on a supercomputer, with performance of a 386?
I'd guess they implement it by having the client upload an encrypted version of both the original image and a thumbnail, and then decrypting the thumbnails on the client at display time. Javascript has reasonably performant crypto primitives now, so it's very doable to download data from a server, decrypt it with a client side key, and display it.
If mega can do this, it's a shame other services don't.