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I can't find much documentation on this, is it possible to encrypt/decrypt data within a tezos smart contract? So how would I do something like AES crypto (although does not matter much) in a smart contract?

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There are currently no encrypt/decrypt instructions for Michelson. You can view the full list of instructions here: http://tezos.gitlab.io/mainnet/whitedoc/michelson.html

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It's not clear what decrypting data from within a smart contract would achieve since all operations are public.

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  • obviously all transactions and data is public, encryption in a smart contract could be used to implement something like a vickery auction (en.wikipedia.org/wiki/Vickrey_auction) - all bidders send in their bid during bid period, bids only get known to public after bid period is over. btw this is not an answer this should have been a comment. Commented Feb 3, 2019 at 17:41
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    You can do that with hash commitments, no need for encryption Commented Feb 3, 2019 at 18:40

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