Data encryption is an effective security measure. It scrambles sensitive data into unreadable gibberish so that only the intended recipient is able to decode it. It is an essential component of digital transformation, since it safeguards the privacy of information stored on computer systems or networks such as the Internet. It also ensures authenticity and integrity, assuring that the information is not altered or altered during transmission or storage.

The process of encrypting data involves changing the information into a format that can only be read by the recipient using a password or key. In the majority of instances, the recipient will then convert the encrypted text back into its original form. Modern encryption techniques employ algorithms that can scramble the original data into the ciphertext. This is accomplished with various methods and algorithms, which include transposition and substitution techniques. The Caesar cipher is an early example of a replacement cipher. Each letter is replaced with another one at fixed positions down the alphabet.

It is commonly required to maintain compliance with regulations established by multiple organizations or standards bodies, like the Fair Credit Reporting Act and other consumer protection laws. It is a crucial security measure to protect sensitive information of a company, client or a patient from cyberattacks. Retailers need to, for instance, secure credit card information and shipping details when they transfer these data between networks or between systems. The encryption process can protect data at rest on computers, USB devices and other hardware from physical or virtual theft by hackers.