Final answer:
Keyless encryption is where AWS can perform encryption operations without holding any keys. Clients manage the encryption keys themselves, retaining full control over access to their encrypted data.
Step-by-step explanation:
The type of encryption where AWS performs encryption operations but does not hold any keys is referred to as keyless encryption. In traditional encryption methods like symmetric encryption and asymmetric encryption, keys are used to encrypt and decrypt data. In the case of AWS and similar cloud services, customers may choose client-side encryption, where they manage their own keys, and AWS only provides the infrastructure to perform encryption operations. This approach ensures that AWS does not have access to the keys, and thus, cannot decrypt the data.