How does encryption enhance data security?

Encryption enhances data security by converting data into a coded format that can only be read or deciphered by someone who possesses the appropriate decryption key. This process is essential for protecting sensitive information from unauthorized access, which is a fundamental requirement in many organizations. By transforming readable data into an unreadable format, even if the data is intercepted or accessed by malicious individuals, it remains unintelligible without the necessary decryption techniques.

This attribute of encryption is particularly vital in scenarios where data is transmitted over unsecured networks or stored in potentially vulnerable locations. Essentially, encryption acts as a robust barrier against data breaches, ensuring that confidential information, such as personal identifiers, financial data, and classified information, is safeguarded from prying eyes.

The other options do not accurately reflect the primary function of encryption. While network speed and performance may benefit from various optimizations, they are not a direct result of encryption. Similarly, while an audit trail is a useful security measure related to tracking data access, it is not a function of encryption itself. Finally, while passwords are important for securing systems, encryption does not eliminate their need; rather, it works alongside them to enhance overall security.