What is Data Encryption and why is it Important?

data encryption
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October 20, 2022 Data Encryption

There is no better security protocol than data encryption in today’s day and age. Used in a plethora of security solutions, data encryption prevents unauthorized users from accessing your precious data. Whether you send data over network wiring or look at it on your disk at home, data encryption ensures that your files stay safe and locked.

What Is Data Encryption?

People around the globe have varying perspectives when it comes to the word “encryption.” Some are turned off by the word because it has long been used to describe hijackers who extort money from innocent bystanders. But, in the 21st Century, there are certainly advantages to encrypted data.

When data encryption works for the good of a business, data can be protected and secured. Encryption is a technology that conceals data using complex algorithms. Users who are protecting their data through encryption will receive a cipher key. This is a specialized key to unlock the data, so the material is readable again. Of course, only you and authorized parties should have access to this key, otherwise, it will defeat the purpose of encryption.

If you encrypt your data, you’ll be less concerned about privacy. Encryption will keep unwanted users from accessing your sensitive information.

Now that you see the need for data encryption, let’s go into more detail about why data encryption is important.

The Importance of Encrypted Data

Encryption is important to every business today because it enables them to protect confidential data by converting it into ciphertext, a form that is unreadable without an encryption key. This process is called “encoding.” Encryption makes it nearly impossible for cybercriminals or other unauthorized parties to steal and misuse the data since only those with an encryption key can decipher the data and reveal the true information.

The importance of encryption cannot be understated in the slightest because even the biggest corporations with the largest cybersecurity budgets fall victim to data breaches. That being said, even if your data is in a secure infrastructure, there is still a chance that your data could be compromised. With data encryption, however, your files can be that much more impenetrable even if they were stolen.

So, how would this play out in the real world? Let’s say that there is a user of a company’s data who sent some confidential files via email, which is generally not encrypted in any way. This information is put at risk because hackers can potentially intercept these emails and gain access to confidential data.

On the other hand, if the user uses an encrypted file-sharing solution, even if the information was intercepted and stolen, the cyber attacker wouldn’t be able to access the information because it would be in an unreadable format. Only those with the encryption key would be able to successfully decrypt the information and access it.

Types of Data Encryption

When it comes to the types of data encryption, you can find encryption that is in-transit based, as well as data encryption at rest.

The at-rest encryption is used to make data unreadable on a disk without the encryption key. For the in-transit variety, this is when data can be protected as it travels around networks and the Internet, to its destination.

The types of data that can be protected, but is not limited to, includes credit card numbers, passwords, social security numbers, phone numbers, address, bank accounts, and other information that’s deemed “confidential.”

For the best results, you want to make sure you have both at-rest and in-transit data encryption. Knowing encryption works will bring it all together here. If you only have encryption on your disk, but not the network, things can start to go awry. A hacker would be able to hang out in the network traffic to help them gain access to your disk. In turn, your data would certainly be in hot water. This is why having the whole range covered will give you peace of mind, as it pertains to data encryption.

Ultimately, if you and the business you are a part of do not have the correct data encryption protecting information, this will lead to some very problematic instances. Whether you have a data leak or sensitive material gets out, you and the business may be damaged in more ways than one. Think of economic disasters, brand disasters, and lack of customer faith.

Keeping Backed Up Data Encrypted

Another place that should be encrypted is anything that you back-up. If you own an external hard drive that you plug into your computer, it is crucial that data encryption for both at-rest and in-transit cover your bases as well. This is often overlooked because people do not use their backup files all that much. But, remember that it only takes one time for a hacker to get their hands in the cookie jar. Then, all your prized information will be out there for the taking. There will probably be nothing you can do about it either.

How to Encrypt Information

Encrypting data is essential for any business, whether they are large or small. To protect your data and business material, encryption at rest and in transit are the best way to prevent unauthorized users from accessing your data.

VPN stands for "virtual private network." VPNs encrypt your Internet traffic and your identity online, making it harder for third parties to break in and steal your data.

Voiped Telecom is increasingly deploying the future of hybrid networks consisting of MPLS and Internet VPN.

Until recently, conventional VPN (virtual private network) connections were sufficient enough to give employees access to business applications at the company's data center. However, the increasing growth and mobility of data traffic, combined with the increasing variety of clouds and apps, are taking conventional networks to their limits. This requires the use of hybrid networks consisting of MPLS and Internet lines.

Data transmission options


Employees have a number of options at their disposal for accessing business applications. One professional method is to connect locations through MPLS VPN (also called MPLS IP VPN). In this approach, data traffic does not use the public Internet but instead works with an especially secure, high-performance IP network with guaranteed transmission quality. MPLS VPN solutions aren't just flexible and reliable but also feature numerous monitoring options.