What is encryption? How it works and when to use it

Money.it

16 November 2025 - 20:45

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Have you ever heard of encryption for protecting your data? Here’s what it is, how many types exist, where it’s applied, and how.

What is encryption? How it works and when to use it

Encryption is a security system that has now become the standard for all major services used, websites visited, and programs downloaded. It is a technology considered essential for responsibly browsing online, with the certainty that data exchange can be carried out securely.

You’ve most likely heard of it, perhaps reading about the end-to-end encryption that protects WhatsApp chats. But if you were asked to give a practical definition, would you be able to answer?

To clear up any doubts and gain a better understanding of encryption, this guide will provide you with all the essential information you need to know about the most powerful tool in the fight against online crime.

What is Encryption

Encryption is a system with ancient origins, but it has begun to gain more attention with the advent of telecommunications and applications, where data protection plays a fundamental role.

It is nothing more than a system capable of converting data into a format that becomes readable only in an encoded form, so that it can only be opened, processed, or read after decryption.

It is considered by experts and others as the simplest method to ensure that information remains safe, without the risk of theft by third parties.

More technically, encryption uses a mathematical algorithm capable of transforming a specific sequence of characters. Each element obtained has a secret key, which is equivalent to an algorithm for encryption and decryption. This element symbolizes a sort of security seal.

Today, encryption represents a means for companies offering services to demonstrate their security, as well as a system for confirming the authenticity of information.

How many encryption methods are there

There are different types of encryption methods, developed over the years and refined to make data exchange systems increasingly secure. This strategy is almost mandatory, taking into account the various evolutions of the latest technological systems.

In general, there are 5 most widespread encryption systems used by small and large companies:

  • Symmetric encryption: This system is based on a single key, which serves both to hide and decrypt a message. It is one of the easiest to implement, so much so that it is still among the most widely used today, especially for services and portals in their infancy. Regarding the algorithm used, the most common is AES, an acronym for Advanced Encryption Standard;
  • Asymmetric encryption: Unlike symmetric encryption, asymmetric encryption uses two keys to protect messages. The first is used to encrypt a message, and the second is used to decrypt it. A major difference is that one is public, the other is private. Obviously, the decryption key cannot be made public, to ensure maximum privacy;
  • End-to-end encryption: You’ve likely heard of this for WhatsApp, Telegram, or other messaging platforms. This protection system is particularly widespread because it prevents third parties from accessing data as it’s transferred from one device to another. Furthermore, not even service providers have access to the content.
  • Homomorphic encryption: Following the expansion of cloud computing, this encryption system has become increasingly popular. Its purpose is to make data stored in the cloud more secure, ensuring it is accessible only to those who need to use it. For its correct operation, which relies on data manipulation, there are two types of widespread standards: partially homomorphic encryption (PHE) and fully homomorphic encryption (FHE). The former can process only one type of operation, such as addition or multiplication, while the latter can process any operation, including arithmetic ones.
  • Quantum encryption: The last of the widespread encryption systems is quantum cryptography, clearly exploited for quantum mechanics when key exchange occurs. Unlike the other alternatives discussed, this uses the photon component, capable of preventing a message from being intercepted without the creator or recipient noticing.

Where Encryption is Applied

Modern encryption is increasingly used to ensure maximum cybersecurity wherever data confidentiality is required. Examples include storage media and login procedures, where messages and files must remain private. The same applies to communications over Wi-Fi or data networks and standards that guarantee confidentiality such as WEP and WPA.

When browsing the internet, encryption serves to hide data communication between clients and servers, including SSH, SSL/TSL, HTTPS, and IPsec protocols. This includes banking transactions via home banking apps and sites, pay-per-view services to prevent non-subscribers from accessing paid content, and device certifications.

Finally, it’s worth mentioning software components such as UEFI databases, drive drivers, and operating system boot leaders, as well as VPN and email-based technologies.

The Disadvantages of Encryption

Just as it’s important to highlight the enormous advantages encryption can offer, it’s also important to highlight the disadvantages of such a widespread cybersecurity standard.

This system is typically used for data protection, and this is precisely where web attackers focus. Several times in the past, organizations have been able to breach systems, encrypt data, and extend a ransom through ransomware.

Another disadvantage of encryption is key management, especially when these are secure. Here too, hackers could organize attacks to obtain them and stage a criminal attack. At the same time, it cannot be ruled out that the user or organization could lose control of the data and lose access to relevant information.

Finally, a topic that has been debated for years concerns quantum computing, considered by many to be a real threat to modern cryptography. Once ready, it would be able to process currently unimaginable amounts of data in a fraction of a second. Theoretically, it would thus be possible to even break existing cryptography. For this reason, it cannot be ruled out that all organizations will have to adopt quantum cryptography techniques in the future.

Original article published on Money.it Italy. Original title: Cos’è la crittografia? Come funziona e quando si usa

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