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Abstract: Original scientific paper Cloud computing is the popular technology and seems to be very promising for the future trends. In the cloud computing, programs and data are stored and sometimes processed in cloud. So data and programs can easy be accessible anywhere, anytime. Cloud computing is also a very applicable solution for e-government services due to cost effectiveness and efficiency of services. While it eliminates the need of maintaining costly computing facilities by companies and institutes, one of the barriers for cloud adoption is still security concerns. Out of cloud computing is depended upon internet, safety topics such as, confidentiality, authentication, privacy, and data securities are the main concerns. In the cloud, users should search encryption capabilities for preserving and retaining their data. In the same time, they have to protect the functionality of the underlying cloud applications. There are many encryption algorithms to encrypt the data. However, there are new varieties of cyber-attacks developed that threaten the data in the cloud infrastructure. These attacks allow the encrypted data to be re-encrypted, making it incomprehensible by the original owner of the data so that it becomes impossible for the user to decrypt it. This article is written to allow users to understand the working steps and challenges of the algorithms, comparisons of the algorithms and possible solutions for the resent threats in the cloud environment related with cryptography for e-government applications.