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Data encryption is a powerful security measure that encrypts sensitive data into unreadable gibberish to ensure that only the intended receiver can decode it. It is a crucial part of digital transformation since it safeguards the confidentiality of information stored on computer systems or networks, such as the Internet. It offers integrity and authentication, ensuring the information is not altered or tampered during storage or transmission.

The process of encryption involves changing the information into a format that can only be read with a password or a key. In most cases, the recipient can then translate the ciphertext back into its original form. Modern encryption techniques employ algorithms that encrypt the original data into the ciphertext. This is done using various methods and algorithms, which include transposition and substitution techniques. The Caesar cipher, named after Caesar, the Roman Emperor Julius Caesar, is an early example of a substitution cipher, in which each letter is replaced by one that is a specific number of places down the alphabet (e.g., «E» becomes «Y»).

It is possible to require encryption to ensure compliance with the regulations set by various organizations or standard bodies including the Fair Credit Reporting Act (FCRA) and other consumer protection laws. It is also an essential security measure to guard sensitive client, company or patient data from cyberattacks. Retailers should, for example, safeguard credit card data and shipping details when they transfer data between networks or systems. The encryption process may also safeguard data stored on computers, USB devices and other hardware from theft via physical or digital means by hackers.

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