Glossary

How does data encryption protect your organization's information?

Published on
October 4, 2025

Introduction

Encryption converts readable information into an unreadable form so only authorized parties can read it. It’s a core defensive control used to protect data stored on devices, moved across networks, or processed in memory. Properly applied encryption greatly reduces the value of stolen data and is required by many compliance frameworks.

Data encryption illustration

What is data encryption?

Encryption is the process of transforming data into a format that is unreadable without a specific key. IT teams use algorithms and cryptographic keys to turn plaintext into ciphertext so attackers who access the data can’t interpret it. It protects confidentiality across storage, backups, and network traffic and is often combined with access controls and monitoring.

How does encryption actually work?

At its core, encryption uses mathematical algorithms and a secret key to scramble information. A well-known algorithm applies the key to data to produce ciphertext; reversing that process requires the correct key. Systems use either a shared key (symmetric) or a public/private key pair (asymmetric) to control who can decrypt and read the original content.

What is the difference between symmetric and asymmetric encryption?

Symmetric encryption uses one key for both encrypting and decrypting data, while asymmetric encryption uses a public key and a private key pair. Symmetric methods like AES are fast and suited for bulk data, whereas asymmetric methods (RSA, ECC) are commonly used for secure key exchange and digital signatures. Many practical systems combine both: asymmetric encryption to exchange keys, symmetric for the actual data transfer.

When should you encrypt data at rest?

Encrypt data at rest whenever it contains sensitive or regulated information stored on disks, databases, or backups. This includes customer records, financial data, intellectual property, and archived files. Using full-disk encryption, database-level encryption, or encrypted backup targets reduces the impact of physical theft and unauthorized access to storage systems.

How do you secure data in transit?

Protect data in transit by using proven transport-layer encryption like TLS to stop interception and tampering. Always enable TLS for web traffic, APIs, email submission, and file transfers, and ensure certificates are valid and up to date. For internal services, enforce encryption between services and use strong cipher suites to avoid weak algorithm risks.

Can data in use be encrypted?

Data in use—information being processed in memory—is the hardest state to protect because it must be available to applications. Options include hardware-based protections (Trusted Execution Environments, secure enclaves) and application-level controls that minimize the exposure of plaintext. While not a full replacement for other controls, these techniques raise the bar for attackers targeting memory-resident secrets.

Which encryption algorithms and key sizes should IT teams prefer?

Choose industry-standard, widely vetted algorithms such as AES for symmetric encryption and RSA or ECC for asymmetric needs. Use AES-256 for high confidentiality requirements and RSA keys at least 2048 bits or ECC curves like P-256/P-384 where appropriate. Avoid deprecated algorithms (DES, MD5, SHA-1) and keep algorithms and key lengths aligned with current cryptographic guidance.

Why is key management critical?

Encryption is only effective when keys are protected and managed correctly. Key management includes generating strong random keys, rotating them regularly, securely storing them separate from encrypted data, and using HSMs for high-value keys. Poor key practices—hard-coded keys, shared unsecured key stores, or missing rotation—are common failures that negate encryption benefits.

How does encryption help meet compliance requirements?

Many regulations explicitly require or expect encryption for protected data—examples include HIPAA, PCI DSS, and GDPR. Using approved encryption methods and documenting controls helps satisfy auditors and reduce legal risk after a breach. Note that compliance often requires both technical controls (encryption) and administrative safeguards (policies, audits).

Can encryption prevent ransomware?

Encryption reduces the value of stolen data but does not stop ransomware from encrypting systems or disrupting operations. Encrypted backups and strong access controls make recovery easier and limit attackers’ leverage; however, organizations must also focus on patching, endpoint protection, and incident response. Treat encryption as part of a layered defense rather than a single solution.

What are common implementation mistakes to avoid?

Common errors include using weak or outdated algorithms, poor key storage, encrypting only some layers while leaving plaintext elsewhere, and failing to rotate keys. Other pitfalls are misconfiguring TLS, relying on home-grown cryptography, and neglecting auditing and monitoring. A disciplined approach—standards-based algorithms, HSM-backed keys, and regular reviews—prevents these mistakes.

How should an organization start an encryption program?

Begin by classifying data and identifying where sensitive information lives and moves. Prioritize high-risk data (payment data, PHI, credentials), choose appropriate encryption mechanisms, and create a key management policy. Pilot solutions on noncritical systems, document configurations, and expand with continuous monitoring and staff training.

Quick Takeaways

  • Encryption turns readable data into ciphertext so only authorized holders of keys can decrypt it.
  • Use AES for bulk encryption and RSA/ECC for key exchange or signatures; avoid deprecated algorithms.
  • Protect keys: generate strong keys, rotate them, and store them separately—use HSMs for critical keys.
  • Encrypt data at rest, in transit, and consider hardware-based protections for sensitive data in use.
  • Encryption supports compliance (HIPAA, PCI DSS, GDPR) but must be paired with policies and monitoring.
  • Treat encryption as one layer in a broader security program—backup, patching, and detection matter too.

Further reading

For a concise set of practical steps and tools, see Palisade’s encryption resources: Palisade encryption resources.

Frequently asked questions

Is encryption the same as hashing?

No. Encryption is reversible with a key so authorized parties can recover the original data; hashing is a one-way function used for integrity checks and storing things like password digests. Use hashing for verification and encryption for confidentiality.

How often should I rotate encryption keys?

Rotate keys regularly based on risk—commonly every 6–12 months for many systems, sooner for high-value secrets. Rotate immediately after suspected exposure and follow a documented key rotation policy to minimize downtime and operational risk.

Can cloud providers manage keys for me?

Yes—cloud platforms offer key management services and HSM-backed options, but you must evaluate control, access policies, and separation of duties. Managed keys simplify operations but verify the provider’s compliance posture and audit capabilities.

Does encryption impact application performance?

Encryption adds CPU and memory overhead, but modern algorithms and hardware acceleration (AES-NI) make the impact manageable for most workloads. Use asymmetric crypto sparingly for bulk tasks and rely on symmetric ciphers for data-heavy operations to balance performance and security.

What should I do if an encrypted backup is inaccessible after a key loss?

If keys are lost and no backups of the keys exist, the encrypted data may be unrecoverable—this underscores key backup and recovery planning. Implement secure key escrow or split-key techniques and test recovery procedures regularly to avoid permanent data loss.

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