The decryption and reencryption processes are conducted on a separate network; neither the blockchain nor the EVM possesses the private key or any part of it.
For this network, we employ threshold cryptography. The multi-party paradigm of threshold cryptography facilitates threshold schemes for securely distributing trust in decryption operations. Each party holds a portion of the private key and cannot decrypt independently; however, as it currently stands, participation from at least one-third is necessary.
The reencryption process differs slightly. A user requesting reencryption will receive multiple reencrypted parts to reassemble, ensuring that the complete value is never fully decrypted at any point.