What Is Encryption?

Encryption is the transformation of plain data into a secret code, or ciphertext, to shield it from unauthorized access. It ensures privacy by converting readable information into a protected format, which can be reverted via decryption. In Bitcoin, while blockchain data is transparent, wallet security hinges on encryption, primarily using the Advanced Encryption Standard (AES). This method, favored by intelligence agencies, is essential in preserving digital confidentiality and transaction safety.