Encryption is the process of converting information into a code to prevent unauthorized access. It works by using an algorithm to scramble the data into an unreadable format, which can only be unlocked with a specific key or password.

Encryption is crucial for data security because it ensures that even if unauthorized individuals gain access to the data, they won’t be able to understand or use it. This is especially important for sensitive information such as personal, financial, or business data. Without encryption, data is vulnerable to theft or alteration, leading to privacy breaches, financial loss, and other security issues. By using encryption, organizations can safeguard their data and maintain the confidentiality and integrity of their information.