What is data encryption: features and how does it work?

Data encryption is a fundamental security practice to protect digital information and ensure its integrity and privacy. In a context where cyberattacks are growing in volume and sophistication, protecting data through encryption techniques is an unavoidable strategic and legal obligation for any organization.

However, encryption only works on data you already control. The critical question is: do you know if sensitive company information is exposed on the internet, the deep web, or the dark web without your knowledge? Cyber-surveillance platforms like Kartos, developed by Enthec, automatically monitor open vulnerabilities and data breaches affecting an organization in real time, including exposed databases and compromised credentials, thus complementing the layer of protection offered by encryption.
In this article, you will find a comprehensive guide, updated to 2026, on what data encryption is, how it works, the different types available, its main use cases, and how it relates to the GDPR and current regulations.

Data encryption: definition

Data encryption is the process of transforming readable information (plaintext) into an encoded format (ciphertext) that can only be read by those in possession of a specific decryption key. This process ensures that data is inaccessible to unauthorised persons, thus protecting the confidentiality and integrity of the information. Its importance lies in several key aspects that ensure data integrity, availability, and confidentiality:

  • Privacy protection: Data encryption ensures that sensitive information, such as personal, financial, and health data, remains private and secure. By converting plaintext to ciphertext, only authorised persons with the decryption key can access the information.
  • Communications security: In digital communications, such as emails, instant messages, and online transactions, encryption protects against interception and eavesdropping. By encrypting transmitted data, it ensures that any attempt to intercept the communication results in information that is unreadable to attackers.
  • Compliance: Many regulations and laws, such as the General Data Protection Regulation (GDPR) in Europe, require encryption to protect personal data. Compliance with these regulations not only avoids legal sanctions but also demonstrates an organisation’s commitment to protecting its customers‘ and users’ information.
  • Cyber-attack and fraud prevention: Data encryption helps prevent unauthorised access and misuse of information, preventing the risk of fraud and cyber-attacks. Attackers attempting to access encrypted data will face a significant barrier, hindering their efforts and protecting critical information.
  • Intellectual property protection: In the business environment, data encryption protects intellectual property such as trade secrets, patents, and confidential documents. This is essential to maintain a competitive advantage and prevent the leakage of valuable information.
  • Customer trust: The use of database encryption also helps build trust among customers and users. Knowing that an organisation takes steps to protect its personal information increases customer trust and loyalty, which can translate into long-term business benefits.

Data encryption

Main challenges of data encryption

Despite its benefits, data encryption presents challenges:

  • Key management. The generation, distribution, and secure storage of encryption keys are critical and complex.
  • Rendimiento. El cifrado puede afectar el rendimiento de los sistemas, especialmente en el caso de cifrado asimétrico.
  • Compatibility. It is necessary to ensure that systems and applications are compatible with the encryption methods used.
  • Quantum threat. Advances in quantum computing put current encryption algorithms at risk. Cybercriminals are already employing the “harvest first, decrypt later” strategy: they store encrypted data today to decrypt it as soon as quantum computing becomes feasible, thereby jeopardizing long-term information such as trade secrets, medical research, and government documents. In response, NIST published the first official post-quantum cryptography standards (FIPS 203, 204, and 205) in 2024. The roadmap is clear: RSA and ECC asymmetric ciphers will become obsolete by 2030 and will be banned by 2035, making cryptographic migration planning essential now.

How data encryption works

The data encryption process is performed using mathematical algorithms and encryption keys. Database encryption algorithms are mathematical formulae that transform plaintext into ciphertext. The encryption process consists of the following steps:

  1. Key generation. An encryption key is generated, which will be used to transform the plaintext into ciphertext.
  2. Encryption. The encryption algorithm uses the key to convert plaintext into ciphertext.
  3. Transmission or storage. Ciphertext is transmitted or stored securely.
  4. Deciphered. The authorised receiver uses the corresponding key to convert the ciphertext back into plaintext.

Most effective techniques for data encryption

Keys are essential for data encryption and decryption. There are two main types of encryption:

  • Symmetric Encryption: uses the same key to encrypt and decrypt data.
  • Asymmetric Encryption: uses a public and a private key pair. The public key encrypts the data, and only the corresponding private key can decrypt it.

Each of these is explained in more detail below.

Symmetric encryption methods

Symmetric encryption is an encryption method that uses the same key to encrypt and decrypt data. It is known for its speed and efficiency, making it ideal for large volumes of data. Some of the most common methods include:

  • AES (Estándar de cifrado avanzado). It is one of the most secure and widely used algorithms. It offers different key sizes (128, 192, and 256 bits) and is resistant to cryptographic attacks.
  • DES (Data Encryption Standard). Although older and less secure than AES, it is still used in some applications. It uses a 56-bit key.
  • 3DES (Triple DES). It improves the security of DES by applying the algorithm three times with two or three different keys.

Symmetric encryption is efficient, but secure key distribution is challenging because both parties must share the same key without compromising its security.

Asymmetric encryption methods

Asymmetric encryption uses a pair of keys: a public key and a private key. The public key is used to encrypt the data, while the corresponding private key is used to decrypt it. This method is more secure for data transmission, as the private key is never shared.

  • RSA (Rivest-Shamir-Adleman). It is one of the best-known and most widely used asymmetric encryption algorithms. It provides high security and is used in applications such as digital signatures and SSL/TLS certificates.
  • ECC (criptografía de curva elíptica). It uses elliptic curves to provide a high level of security with smaller keys, making it more efficient in terms of performance and resource usage.

Asymmetric encryption is ideal for secure data transmission, although it is slower than symmetric encryption due to its mathematical complexity. If you want to keep up to date in this sector, we encourage you to access our contentThe 5 cybersecurity trends you need to know. Now that you know the examples of data encryption, it’s time to discover its key benefits.

Key benefits of data encryption

Key benefits of database encryption include the following:

Data protection on different devices

Data encryption is an essential measure for protecting data on a variety of devices, including mobile phones, computers and servers. By converting information into a format unreadable to anyone without the decryption key, encryption ensures that sensitive data remains secure, even if the device is lost or stolen. This is especially relevant in a world where cyber-attacks are becoming increasingly common and sophisticated.

Data encryption examples

Maintaining data integrity

Encrypting data ensures that the information is not altered during storage or transmission. This is crucial to prevent malicious manipulation and to ensure that data remains accurate and reliable. In the context of data transmission, encryption protects information against unauthorised interception and modification. This is especially relevant in 2026, as ransomware has evolved beyond simply locking data: according to Picus Labs’ Red Report 2026, the “data encryption for impact” technique decreased by 38% in one year, from 21% of samples in 2025 to 12.9% in 2026. Attackers now combine encryption with prior data theft to threaten the release of the stolen data (double and triple extortion). This makes defensive encryption a necessary but insufficient layer; if data is exfiltrated before being encrypted, the organization remains vulnerable.

Furthermore, encryption helps detect any alteration to the data, since any change to the encrypted information will result in unreadable data when decrypted without the correct key.

Data migration to cloud storage

Data encryption is essential for secure data migration to cloud storage. Encrypting information before transferring it to the cloud ensures that data remains protected from unauthorized access during migration. This is especially important because data can be vulnerable to interception and cyberattacks while moving over public or private networks.

By 2026, the shared responsibility model for cloud providers will be a well-established standard: the provider protects the infrastructure, but data encryption and key management remain the responsibility of the organization.
Options like BYOK (Bring Your Own Key) allow for maintaining cryptographic control even when data resides with third parties. In fact, according to Encryption Consulting’s Global Encryption Trends 2026 report, 62% of the market is migrating to cloud-based HSM modules to balance rapid scalability with data residency laws and sovereignty requirements. This is also essential for GDPR compliance, which mandates appropriate security measures for the processing of personal data.

Data Encryption and GDPR: Obligations and New Developments in 2026

The relationship between data encryption and the GDPR is direct and close. The General Data Protection Regulation (EU Regulation 2016/679) sets out in Article 32 that data controllers must implement appropriate technical and organizational measures, including the encryption of personal data as a recommended security measure.

In practice, the GDPR and data encryption interact in several key scenarios:

  • Reducing the risk of penalties: If a security breach occurs but the data was properly encrypted, supervisory authorities often consider the risk to data subjects to be low, reducing the notification obligation and applicable penalties.
  • International transfers: Encryption is a complementary measure in data transfers to third countries without an adequacy decision, in accordance with standard contractual clauses.
  • Privacy by design: The principle of “privacy by design” requires that encryption be incorporated at the design stage of systems and applications, rather than as a later addition.

In 2026, the regulatory scope has expanded on two fronts. First, the NIS2 Directive, in force since October 2024, requires operators of essential and critical services across the EU to implement encryption measures as part of their risk management, with penalties of up to €10 million or 2% of their total annual global turnover for non-compliance.

Second, Google will roll out mandatory HTTPS in Chrome during 2026 in two phases: in April for more than 1 billion users with Enhanced Protection enabled, and in October for the entire browser. TLS encryption on the web will thus cease to be optional and become the de facto universal standard.

 

Data encryption within a comprehensive cybersecurity strategy

Data encryption cannot be considered in isolation. To be truly effective, it must be integrated into a comprehensive cybersecurity strategy that includes continuous threat exposure management (CTEM), early vulnerability detection, and incident response.
Phishing prevention, Zero Trust policies, and data encryption together form a defense-in-depth model that significantly increases an organization’s resilience against today’s threats.
By 2026, this approach is no longer just a recommendation: the Global Encryption Trends 2026 report indicates that encryption has risen to the level of strategic discussion at the board level, driven by AI convergence, the shortening lifespan of certificates, and quantum risks. Organizations that have adopted centralized and automated crypto governance achieve annual savings exceeding $3 million and reduce breach response times by 45%.

Monitoring that encryption is properly implemented and that there are no gaps in its application requires continuous visibility.

Kartos automates this monitoring, allowing your security team to detect and correct vulnerable configurations before they are exploited.  Contact us!