What is encryption?

Encryption is the process of converting readable data into an unreadable format so that only authorized parties can interpret it. It protects information by transforming it using mathematical algorithms and cryptographic keys, ensuring that even if data is intercepted or accessed without permission, it remains unintelligible. Encryption is a foundational security control for internal tools, backend systems, and low-code applications handling sensitive operational data.

In modern software environments, encryption helps safeguard information whether it is stored in databases or transmitted between systems. By requiring the correct key to decrypt and read the data, encryption preserves confidentiality and reduces the risk of exposure during breaches, integrations, or automated workflows. It functions as a protective layer beneath authentication and access control, ensuring data remains secure even when identity checks fail.

For an explanation of how identities are verified before data access, see our authentication glossary entry.

How encryption works

Encryption relies on algorithms that scramble information into ciphertext. Only those with the correct decryption key can transform the ciphertext back into readable data. In practice, two models are commonly used: symmetric encryption, where the same key is used to encrypt and decrypt data, and asymmetric encryption, which uses a public key for encryption and a private key for decryption.

When internal tools or low-code applications communicate with APIs or backend services, encryption ensures that sensitive fields , such as credentials, tokens, customer information, and operational records, remain protected during transmission.

For how these systems exchange data once secured, see our API integration entry.

Encryption also supports secure storage. Databases often encrypt data at rest to prevent unauthorized access from system-level breaches or misconfigurations. Even if storage layers are exposed, encrypted records remain unreadable without the corresponding keys.

Why encryption matters

Encryption plays a central role in safeguarding operational systems. It prevents attackers, insiders, or compromised integrations from viewing sensitive information and reduces the impact of breaches. Encryption also supports compliance frameworks by enforcing confidentiality requirements and ensuring that regulated data remains protected.

Because internal tools often connect multiple services, process operational workflows, and manage customer-facing data, encryption protects information as it moves through these systems. It secures automated tasks, protects files and attachments, and prevents unauthorized entities from extracting value from intercepted data. Encryption is especially important in environments undergoing modernization or digital transformation, where legacy systems may have relied on unencrypted storage or insecure transport.

Practical implementation

Implementing encryption involves choosing the right algorithm (such as AES or RSA), generating secure keys, and managing those keys safely. Keys must be stored in secure environments, rotated regularly, and never exposed in application code or client-side interfaces. Many platforms perform encryption automatically at both the application and database level, but teams must still configure secure transport protocols like HTTPS or TLS to protect data in transit.

Internal tools also rely on encryption to protect session tokens, cookies, and credentials during authentication. When users log in, their tokens are encrypted and signed to prevent tampering. For more on identity verification, see our authentication entry. When automated workflows run, encryption prevents exposed logs or integration failures from leaking sensitive information; see our workflow automation entry for how these systems operate securely.

Risks and limitations

Encryption is powerful but not foolproof. If keys are mismanaged, stored insecurely, or leaked, encrypted data becomes vulnerable. Poor cryptographic choices, such as outdated algorithms or weak key sizes, can also weaken protection. Encryption does not prevent unauthorized access by authenticated users, nor does it replace proper access controls.

For understanding how permissions complement encryption, visit our RBAC glossary entry.

Finally, encryption introduces computational overhead, which teams must balance against performance needs when processing large datasets or frequent transactions.

Encryption in the context of internal tools

Internal tools often centralize sensitive operational information such as financial workflows, customer records, approval chains, and backend integrations. Encryption ensures that any data these tools store or transmit remains unreadable to unauthorized users, attackers, or compromised services. It also supports incident response: even when systems are breached, encrypted data limits the scope and severity of the damage.

Modern internal tools rely on layered security: authentication verifies identity, RBAC limits permissions, and encryption protects the underlying data itself. Together, these controls allow organizations to build reliable, compliant, and secure workflows across their operational stack.

FAQ

What is the difference between data in transit and data at rest?

Data in transit moves between systems; data at rest is stored. Encryption protects both by making the information unreadable without the proper key.

Does encryption replace authentication or RBAC?

No. Encryption protects the data itself. Authentication and RBAC control who can access it. All three are required for secure internal tools.

What algorithms are commonly used?

AES is widely used for symmetric encryption, while RSA and elliptic-curve methods support asymmetric encryption for secure key exchange and signing.

Is TLS the same as encryption?

TLS is a protocol that uses encryption to secure data in transit. It ensures data sent over a network remains confidential and untampered.

What happens if an encryption key is compromised?

Anyone with the key can decrypt the data. Secure storage, rotation, and key management are crucial to maintaining protection.

Do low-code platforms handle encryption automatically?

Most modern platforms encrypt data in transit (via HTTPS) and data at rest. Teams should still review how keys are stored and how integrations handle sensitive fields.

For deeper guidance on security and access control in low-code environments, explore these articles:

• Security and compliance checklist for CTOs investing in low-code: a practical overview of the essential controls required for secure internal tools, including RBAC.

• Addressing Security Concerns in Low-Code Development: an in-depth look at how enterprises can implement RBAC, MFA, and secure integrations across low-code systems.