What is the purpose of data encryption?

Data encryption serves the essential function of securing data by converting it into a coded format that is unreadable to unauthorized users. This transformation ensures that even if data is intercepted or accessed without proper authorization, it remains protected and confidential. The coded format, typically known as ciphertext, can only be reverted back to its original readable form (plaintext) by individuals who possess a specific key or password, thereby maintaining data integrity and confidentiality.

In the context of information technology, encryption is critical for protecting sensitive information, such as personal data, financial transactions, and proprietary business information, from threats such as hacking or data breaches. By employing encryption, organizations can significantly minimize the risk of data exposure and safeguard their assets, thus complying with legal and regulatory requirements regarding data protection.