Network encryption: what it is and how does it work?

How does network encryption work?

Network encryption is a process used to protect data as it travels between devices on a network. It works by converting readable data, or “plaintext,” into an unreadable format known as “ciphertext.” This ensures that only authorized parties can access the information.

Encryption relies on encryption keys—special codes that apply mathematical formulas, or algorithms, to data. Think of the encryption key as a lock that scrambles the information, and the only way to unlock and read that data is to have the matching key. The stronger the key, the more difficult it is for someone without authorization to crack the code.

For example, picture sending a message in code, like replacing each letter with another letter further down the alphabet. A simple version of this is called the “Caesar cipher,” where shifting the letters by a certain number (say, three places) turns the word “hello” into “khoor.” To read the message, the receiver needs to know the key (the shift of three letters) to decode it.

In modern network encryption, this process is much more complex. Instead of a simple letter shift, the algorithms create long strings of random characters that would take years for a computer to guess through brute force. Encryption occurs at the network layer, meaning data is protected both as it moves across the internet and within internal networks, like between offices or devices in the same company.

When you browse the internet or send an email, tools like Secure Sockets Layer (SSL) or Transport Layer Security (TLS) protect your information. Virtual Private Networks (VPNs) also add an extra layer of protection, hiding your identity by masking your IP address while encrypting your data.

In short, network encryption ensures that your data is scrambled into a code that can only be understood by someone with the correct key. This keeps sensitive information safe from prying eyes as it travels across different networks.

Why is network encryption important?

Robust network encryption has many benefits for modern companies. This makes it a non-negotiable feature of network-wide security strategies:

• Reliable encryption is the first line of defense against data breaches. When mounting man-in-the-middle attacks, attackers must decode encryption keys. This makes the task much more difficult. High-grade encryption at the network layer protects all customer and corporate data in transit. This ensures it remains safe from external observers.
• Encryption is a required ingredient of many networking security compliance regulations. Robust encryption on internal networks assures regulators. It helps meet standards demanded in sectors like healthcare or credit processing.
• Encryption protects outbound traffic from interception. This guards intellectual property assets and confidential data. Email encryption is a safe way to communicate with third parties.
• Companies operating comprehensive encryption policies suffer fewer data losses. They tend to record lower costs relating to litigation or data recovery operations.
  
  

It is critical to recognize that encryption is not cost-free. Encrypting and decrypting data consumes time and system resources. This potentially results in diminished network performance.

Encryption is also not a stand-alone solution. Users must consider the broader cybersecurity context.

Cyber attackers can gain insights by tracking and analyzing encrypted traffic patterns. Cloud or on-premises storage systems containing data at rest remain vulnerable to attacks. This applies regardless of internal encryption procedures.

Some companies neglect internal network encryption. Instead, they focus on perimeter defense and internet communications. This makes data flowing within network architecture more vulnerable. Attackers can access internal assets in many ways, despite perimeter encryption.

Security teams can become complacent, neglecting to scan encrypted files for malicious agents. Only around 22% of companies routinely inspect encrypted traffic. This allows attacks to slip through the net.

Create an effective network encryption solution

Encryption guards network traffic against attackers, making data breaches less likely. Companies can only achieve complete data protection by encrypting critical at-rest data. They must also protect sensitive in-transit data within and beyond the network perimeter. Network encryption is essential. But it is only an element of comprehensive data security strategies. Traffic monitoring, network segmentation, access management, and robust security policies are all required to reap the benefits of network-wide encryption.