In cloud computing, Encryption is a critical security tool that protects data from unauthorized access. It transforms readable data (plaintext) into an unreadable format (ciphertext) using an algorithm and an encryption key. The data is only readable again (decrypted) if the key is available.

Encryption works by using algorithms to transform data into a format that can only be read with a decryption key. In cloud computing, data can be encrypted at rest (when it is stored) and in transit (when it is being moved from one place to another). This ensures that even if the data is intercepted or accessed without authorization, it cannot be read.

A company stores sensitive customer data in the cloud. To protect this data, they use encryption. Even if a hacker were to gain access to the data, they would not be able to read it without the decryption key.