When you transfer information or data over the internet, it flows via a succession of network devices globally that make up the “public” Internet network. Your data may be compromised if it travels across the Internet which is why privacy for finance services is so critical. To avoid a breach, install software/hardware that ensures safe data transport. Modern digital technology calls these processes encryption.
When encrypted, your shared data is encoded, meaning it’s made illegible. Unreadable data is decoded for the receiver when it reaches them. This encoding/decoding procedure requires a digital “key,” which I’ll discuss next.
Encryption prevents third-party interference while sending or exchanging data. It can be done anywhere along the data flow; it’s not isolated. You may encrypt data while working or sending it.
What is Encryption?
Let’s examine how encryption works now that we understand it. Encryption scrambles data using algorithms. Before transmitting a message or data to the recipient, you must produce a random key. Imagine locking a box of crucial documents with a key. Your friend receives the package. She has your key and can access the crucial documents. All of this is done digitally.
There are three encryption levels:
- Encryption (ciphertext)
- Decryption (same as the initial plain text).
Symmetric is quicker than asymmetric since it uses a single private key (explained in detail in the next bullet). For symmetric encryption, the sender must share the private key with the recipient.
It’s a well-known encryption method. Since the sender and recipient should exchange the secret key, it’s dangerous for hackers to get the data.
Asymmetric encryption uses a public and private key. Everyone has the public key. Encrypt your data or communication using a public key and decode with a private key. Imagine you’ve locked a box with private information twice. One of these locks has an accessible master key. You and a friend must share the second key. Someone else sends the package to your pal. He only opens one lock with the master key. He brings the package to your pal, who can open it with a second key.
Since this encryption approach uses two keys, any algorithm based on it is the strongest since it provides excellent security. Asymmetric key encryption hasn’t been cracked yet.
AES is symmetric encryption based on Rijndael. It encrypts fixed-size blocks using a block cipher. 128-bit or 192-bit keys can be expanded to 256-bit. Different rounds encrypt each bit. 128-bit has 10, 192-bit has 12, etc.
It’s one of the greatest encryption algorithms since the NIST designed it. It’s considered a very safe encryption since it uses a single private key.
Rivest–Shamir–Adleman (RSA) encryption uses a public and a private key. One of the best encryption methods, it works with 1024-bit and 2048-bit keys. Larger key sizes slow down encryption.
It’s one of the strongest encryption types due to its huge key. It’s the most secure encryption algorithm, hence it’s used to encrypt internet data. RSA’s long keys make it harder for hackers than other encryption methods.
Triple-DES employs symmetric cryptography. It’s an upgrade to DES’s 56-bit key. TDES encrypts data using a 56-bit key three times, making it 168-bits.
Blowfish is a symmetric block cipher meant to replace DES. Its key length ranges from 32 to 448 bits. As a block cipher, it encrypts and decrypts data in 64-bit blocks.
It’s quick and free public encryption software for every user. Not patented or licensed. It’s been evaluated for speed, efficiency, and security as a public encryption platform. Many companies say it hasn’t been compromised. Blowfish helps e-commerce firms encrypt payments, passwords, and other personal information.
Twofish is an advanced symmetric block cipher like Blowfish. 128-bit block size, 256-bit key length. It splits data into fixed-length pieces like symmetric ciphers. Regardless of data size, it runs in 16 cycles. This encryption is flexible. It lets you pick between speedy encryption and slow key setup.
You have full control over this license-free, quick encryption compared to others. If AES hadn’t won, Twofish would have.
FPE is a novel encryption technique. Similar encryption is used. If your password has 6 letters, 5 digits, and 4 special letters, the result will be a similar combination.
If you employ this encryption method, the structure of your data will stay the same after encryption. It’s utilized in finance, banking, retail, etc.