A more structured, efficient version of LWE that keeps keys small.
The idea: Plain LWE needs a big matrix of random numbers, which makes keys large. Module-LWE uses polynomials instead: one polynomial with 256 coefficients stands for a whole structured 256-by-256 block of the matrix. Keys shrink to about a kilobyte and the math gets fast. The bet is that this tidy structure doesn't hand attackers a shortcut.
Why it matters: Behind NIST's main quantum-safe standards, ML-KEM and ML-DSA.
The details
LWE with algebraic structure, matrices over polynomial rings[1], which makes keys and computations much smaller and faster. Security additionally relies on that structure giving attackers no shortcut.
It underlies ML-KEM (Kyber), ML-DSA (Dilithium)[2, 3] and fully homomorphic encryption schemes such as BGV, BFV and CKKS[4, 5, 6] (KE).
This assumption gives key exchange on its own, so it needs more than one-way functions and falls if public-key encryption is impossible.
TD
This assumption gives trapdoor functions on its own (computable by anyone, invertible only with a secret), so it falls if trapdoor functions don't exist. Schemes built on it need not use a trapdoor: ElGamal doesn't.
References
Adeline Langlois and Damien Stehlé. Worst-case to average-case reductions for module lattices. Designs, Codes and Cryptography, 2015. doi:10.1007/s10623-014-9938-4
Joppe Bos, Leo Ducas, Eike Kiltz et al. CRYSTALS - Kyber: A CCA-Secure Module-Lattice-Based KEM. 2018 IEEE European Symposium on Security and Privacy (EuroS&P). doi:10.1109/eurosp.2018.00032
Léo Ducas, Eike Kiltz, Tancrède Lepoint et al. CRYSTALS-Dilithium: A Lattice-Based Digital Signature Scheme. IACR Transactions on Cryptographic Hardware and Embedded Systems, 2018. doi:10.46586/tches.v2018.i1.238-268
Zvika Brakerski, Craig Gentry and Vinod Vaikuntanathan. (Leveled) fully homomorphic encryption without bootstrapping. Proceedings of the 3rd Innovations in Theoretical Computer Science Conference, 2012. doi:10.1145/2090236.2090262
Jung Hee Cheon, Andrey Kim, Miran Kim and Yongsoo Song. Homomorphic Encryption for Arithmetic of Approximate Numbers. Advances in Cryptology – ASIACRYPT 2017. doi:10.1007/978-3-319-70694-8_15