Encryption
The process of scrambling data with a key so only authorized parties can read it.
Encryption converts readable data into ciphertext using a mathematical key, reversible only by someone holding the right key. It underpins how wallets protect private keys on disk and how exchanges secure data in transit. The math is the same family that secures online banking.
Crypto leans on public-key cryptography, a related field, for signatures and addresses—but that is distinct from plain encryption. For users, the practical points are a strong wallet password and an encrypted backup of the seed phrase. Weak encryption or a weak password defeats the whole purpose.
Related terms
The math of scrambling and verifying information so only intended parties can read or trust it.
Public-Key CryptographyA system using a paired public and private key so anyone can verify a signature only the owner could make.
Private KeyThe secret number that proves ownership of crypto and authorizes spending it; whoever holds it controls the funds.
Digital SignatureA cryptographic proof that a specific keyholder authorized a message, and that it hasn't been altered since.