What is Data Encryption and Why Is It Important?

There is no better security protocol than data encryption in today’s day and age.

Used in a plethora of security solutions, data encryption keeps unwanted visitors away, so they cannot get into 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.

Looking for a secure and easy way to send files? Give TitanFile a try! Free 15-day trial.

Over the last few years, Facebook was caught red-handed with passwords from its users that were compromised. It was not just a few passwords either; there were millions upon millions stored that many people had access to. In turn, Facebook employees had all the access they ever wanted on their users, and some took advantage. You certainly can see why data encryption standards should be set in place to protect what is rightfully yours.

What is Data Encryption?

People around the globe have a varying perspective 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 of data encryption.

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. Security and safety will kick in keeping unwanted users out of your stuff.

Now that you see the need for data encryption, but let us talk more about why it is important in more depth.

The importance of Data Encryption

Data Encryption The importance of encryption cannot be understated in the slightest. Even if your data is in a standard infrastructure, there is still a chance that your data could be compromised. There is always a possibility that data could be jeopardized, but if you have data encryption, your files can be that much more impenetrable.

Think about it this way for a second. If your data is in a sanctioned systems, adding data encryption will protect your information as it is sent out. Sanctioned systems do not protect in this same way.

So, how would this play out in the real world? Let us say that there is a user of a company’s data that has access to sensitive information when he/she is at work. Without any encryption, the individual can put the information on a removable drive and take the information where they please. On the other hand, if the encryptions are put in place beforehand, the user could still copy the info, but the data would be unreadable when they tried to view the information somewhere else. It is the advantages of data encryption like these that show its true importance.

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. For the in-transit variety, this is when data can be protected as it travels around networks, the Internet, etc.

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 much more.

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.


Having data encryption is essential for any business, whether they are large or small. To protect your data and business material, having encryption at-rest and in-transit are the only way to keep hackers out of your information, as well as employees taking private information that needs to be left at work.

If this problem can happen on Facebook, it can surely happen to anyone. So, be diligent and do not risk your precious data getting into the hands of undesired guests. Use data encryption to its utmost potential.

If you’re interested in exploring an easy way to encrypt files in your organization, TitanFile is the most intuitive platform for encrypting shared files and messages. Get a free trial today.

How TitanFile Works - Encrypted File Sharing