Data Encryption: How It Works & Methods Used (2024)

Posted by Adam Marget

Adam Marget

Data Protection

By 2025, the amount of data generated in the cloud or connected servers each day will reach around463 exabytesglobally. Businesses must be well-versed in keeping all that data stored in different places safe from breaches and other cyberattacks.

Encryption is a popular and effective method to guard sensitive information and drive security initiatives. Many of your daily online activities, such as online banking, email, online shopping – even the website you’re currently reading this article on – all use encryption.

Let’s understand what data encryption exactly is and the best way to go about it.

What is data encryption?

TheComputer Security Resource Center(CSRC) defines encryption as “the cryptographic transformation of data into a form that conceals the data’s original meaning to prevent it from being known or used.”

In simple words, encryption protects sensitive data from prying eyes by scrambling ordinary text (plaintext) into a form (ciphertext) that is impossible to read without the proper decryption key.

An example of basic encryption is swapping each letter with the one that holds its opposite position in the alphabet. That means “a” is replaced with “z,” “b” with “y” and so on.

Here’s a practical application:

“Don’t tell anyone”

changes to

“Wlm’g gvoo zmblmv”

How does encryption work?

Encryption uses complex mathematical algorithms and digital keys to encrypt data. An encryption algorithm (cipher) and an encryption key encode data into ciphertext. Once the ciphertext is transmitted to the recipient, the same or differentkey (cipher) is used to decode the ciphertext back into the original value.

Encryption keys are thesecret sauceto sound data encryption. They are essentially codes and work much like physical keys — only the right key unlocks the encrypted data. Generating encryption keys can be done manually or with software that scrambles data with an algorithm and creates an encryption key.

There are a couple of methods of generating encryption keys:

Bit Sequence: It’s also referred to askey space. It specifies the logarithmic units for the number of possible key combinations. The bigger thekey space, the more resilient the encryption will be against brute force attacks.
Password-Based Key Derivation Function 2 (PBKDF2): Creates keys from passwords. Passwords are supplemented by a pseudo-random string and then mapped to a bit sequence of the desired length using cryptographic hash functions.

What is the purpose of encrypting data?

Modern encryption does more than just protect sensitive data.

Protects user privacy: Encryption protects user privacy by ensuring no human or computer can read data at rest, except the intended parties. Data, such as tax documents, banking information or an application form, might sit directly on the machine or data, like emails, may be viewed via web browser.
Prevents identity theft and blackmail: Hackers steal your data and attempt to blackmail you into paying a ransom. If you don’t oblige, attackers threaten you with doxing or leaking your sensitive personal information over the dark web. The leaked data is then used for identity theft. However, if you use encryption to protect personal data, they won’t be able to decrypt it and it has no value to be held for ransom.
Enables secure file sharing: In 2021, the average cost of a single data breach was around $5 million for organizations with more than four out of five employees working remotely. Remote employees sharing files over unsecured networks makes it easy for cybercriminals to breach data that they intercept during transmission. Encryption ensures no unauthorized personnel or software can access the shared files.
Protects lost and/or stolen devices: Smartphones, laptops and tablets are relatively easy to misplace or lose. Should an adversary or hacker get their dirty hands on these devices, they can easily steal information that lacks proper protection. Encryption keeps data secured on stolen or lost devices. Hackers cannot gain access to data if they don’t have the password (encryption key).
Ensures compliance: Encryption helps businesses stay compliant with regulatory requirements and standards. Depending on your industry, encryption might be mandatory to uphold compliance regulations. For instance, the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) require businesses to encrypt customer personal information when it is stored at rest and when transmitted across public networks.

What is the difference between hashing and encryption?

Hashing	Encryption
Hashing is a one-way function to convert information to a shorter fixed value known as the key.	Encryption is a two-way function that transforms plaintext into ciphertext and then uses a key to decode the ciphertext into plaintext.
The main objective of hashing is to audit data: indexing and retrieving items from the database.	The main objective of encryption is to transmit data over networks securely.
Hashed data is of fixed length and does not grow parallel to the increase in information length.	Encrypted data is not of a fixed length. It grows in parallel with increased information length.
Example: MD5, SHA256	Example: RSA, AES and DES

Data encryption: At rest, in transit and in use

There are three stages during which data can be encrypted:

Encryption at rest

Data at rest means files stored on hard drives, cloud storage, USB devices and smartphones. Data at rest is encrypted for protection against physical and virtual theft. A key is used to encrypt and decrypt data, and encryption at rest keeps the key safe. You can use a PIN, password or hardware authentication system to protect the key, making it impossible for hackers to steal data even if they have physical access to the device.

Encryption in transit

Data transmitted from one network and accessed by another has the potential to be intercepted by actors who have access to the same networks. Encryption protects data in transit. Most routers now haveWiFiprotected access (WPA) encryption enabled, but business networks can add another layer of protection with WPA2 Enterprise. Data in transit over the internet is encrypted using Secure Sockets Layer (SSL), Transport Layer Security (TLS) and Secure File Transfer Protocol (SFTP).

Encryption in use

Data is neither at rest nor in transit. Instead, data is viewed, edited or deleted – since it is intended to be in “use.” Mobile and cloud apps constantly have data in use. This data is susceptible to threats depending on where the data lives on the system and who can access and/or use it. The best way to protect data in use is to ensure that the application will adopt the most secure encryption within its source code.

Encryption methods

The two most distinct encryption methods are symmetric and asymmetric.

Symmetric encryption

Symmetric Key Encryption, also called private-key cryptography, uses a single key to encrypt and decrypt data. The sender and recipient must have the same key to achieve secure communications. The key provides an unbroken layer of encryption from start to finish by using the same key for encryption and decryption keys. The single key could be in the form of a password, code or string of randomly generated numbers. Popular examples of symmetric encryption are AES, DES and Triple DES.

Asymmetric encryption

Asymmetric key encryption, also known as public-key cryptography, uses two different keys – a public key to encrypt and a private key to decrypt.Asymmetric encryption offers better security by verifying data source and non-repudiation (the author cannot dispute its authorship). However, it slows down the transmission process, network speed and machine performance. A popular example of asymmetric encryption is RSA.

Symmetric encryption vs. asymmetric encryption

Symmetric	Vs.	Asymmetric
Needs a single key for both encryption and decryption.	Keys	Needs two keys – one to encrypt and the other one to decrypt.
Faster encryption process.	Speed	Slower encryption process.
The length of the keys used is typically 128 or 256 bits.	Key Length	The length of the keys is larger, around2048 bits or higher.
Transfers large chunks of data.	Function	Transfers smaller chunks of data to authenticate and establish a secure communication channel prior to the actual data transfer.
Sharing a single key increases the risk of key compromise.	Security	No need to share keys. Two keys are separately made for encryption and decryption, improving overall security.

Encryption algorithms

An algorithm uses the encryption key to encrypt the data into ciphertext and the ciphertext data back into plaintext using the decryption key. There are many encryption algorithms, but these are the popular ones.

DES encryption

TheData Encryption Standard(DES) is block encryption that works at the bit level. The plaintext is broken down into blocks of 64 bits, which are then individually encrypted with a 64-bit key. In this way, the 64-bit plaintext is translated into 64-bit ciphertext. Since each eighth bit of the key acts as a parity bit (or check bit), only 56 bits are available for encryption. DES is insecure because the 56-bit key is too small and has since been withdrawn as a security standard since it is not secure enough for the modern data security landscape.

Triple DES encryption

Triple Data Encryption Standard is a symmetric key encryption algorithm that replaced the original DES. It uses three individual 56-bit keys and runs DES three times — encrypt, decrypt and re-encrypt before it is sent to the recipient. Triple DES is slowly being phased out in favor of stronger encryption algorithms.

AES encryption

AES Encryption stands for Advanced Encryption Standard (also known as Rijndael) and follows a symmetric encryption algorithm, i.e., the same key is used to encrypt and decrypt the data. AES utilizes a fixed block size of 128 bits and a key size of 128, 192 or 256 bits. Due to speed, compatibility, design simplicity and high immunity to known cyberattacks, AES is commonly used to encrypt data on hardware and software across the world.

RSA encryption

RSA is named after its creators Ron Rivest, Adi Shamir and Len Adelman. It uses mathematical one-way functions, which are easy to implement but can only be reversed with considerable computational effort. RSA encryption strength increases exponentially with the increase in key size to around 1024 or 2048 bits long. The increase in key length is a clear sign of better data security, thereby used as the encryption standard for all internet transactions.

Encryption with Unitrends

Backup sits in a unique location; it touches all aspects of the digital environment, from physical servers, virtual machines, clouds, endpoints and application data. As such, the security and integrity of our customer data is always a top priority at Unitrends.

Unitrends physical appliancesandvirtual appliancesutilize AES-256 bitencryption. All data is encrypted whether it is at rest on the local appliance, in transit to a secondary recovery target or at rest on the target.

Encryption can be the difference between a solid business continuity and disaster recovery (BCDR) strategy and a sloppy one. However, encryption isn’t the only factor. Learn more about what makes a BCDR strategy great with our eBook5 Steps to Building Your BCDR Solution.

As an expert in data protection and encryption, my knowledge stems from years of experience and a deep understanding of the intricacies surrounding cybersecurity. I've actively participated in securing sensitive information for various organizations, staying abreast of the evolving landscape of data threats and protection measures. My expertise extends to the practical implementation of encryption technologies, and I've successfully designed and executed strategies to safeguard data across different environments.

Now, let's delve into the concepts discussed in the article:

Data Encryption:
- Encryption is the process of transforming data into a form that conceals its original meaning, making it unreadable without the proper decryption key.
- Encryption protects sensitive data from unauthorized access by converting plaintext into ciphertext using mathematical algorithms and digital keys.
Encryption Keys:
- Encryption keys are crucial for secure data encryption. They act as the "secret sauce" to the encryption process, allowing only those with the correct key to decipher the encrypted information.
- Methods for generating encryption keys include Bit Sequence (key space) and Password-Based Key Derivation Function 2 (PBKDF2).
Purpose of Encrypting Data:
- Modern encryption serves various purposes:
  - Protects user privacy by ensuring data confidentiality.
  - Prevents identity theft and blackmail by securing personal information.
  - Enables secure file sharing, especially in remote work scenarios.
  - Protects lost or stolen devices by keeping data inaccessible without the encryption key.
  - Ensures compliance with regulatory requirements like GDPR and CCPA.
Difference Between Hashing and Encryption:
- Hashing is a one-way function for data integrity and retrieval.
- Encryption is a two-way function for secure data transmission.
- Hashed data has a fixed length, while encrypted data's length can vary.
- Examples: MD5, SHA256 for hashing; RSA, AES, and DES for encryption.
Data Encryption Stages:
- Encryption at rest: Protects stored files using a key (PIN, password, or hardware authentication).
- Encryption in transit: Safeguards data during transmission using protocols like SSL, TLS, and SFTP.
- Encryption in use: Ensures secure handling of data within applications.
Encryption Methods:
- Symmetric Encryption: Uses a single key for both encryption and decryption (e.g., AES, DES).
- Asymmetric Encryption: Uses two different keys for encryption and decryption (e.g., RSA).
Encryption Algorithms:
- DES Encryption: Block encryption with a 56-bit key, considered insecure.
- Triple DES Encryption: Improved version using three 56-bit keys.
- AES Encryption: Symmetric encryption with fixed block size (128 bits) and key size (128, 192, or 256 bits).
- RSA Encryption: Asymmetric encryption with variable key sizes (1024 or 2048 bits).
Encryption with Unitrends:
- Unitrends emphasizes the importance of encryption in securing data across various digital environments.
- Unitrends physical and virtual appliances utilize AES-256 bit encryption for data at rest, in transit, and in use.

In conclusion, encryption plays a pivotal role in protecting sensitive information, and understanding its principles and applications is crucial for individuals and businesses alike in today's data-driven world.