What is the process of encoding data so that only specific parties can read it called?

The process of encoding data so that only specific parties can read it is known as encryption. This technique transforms readable data, referred to as plaintext, into an unreadable format called ciphertext. Only parties who possess the correct decryption key can convert the ciphertext back into its original plaintext form, ensuring that unauthorized users cannot access or interpret the data.

Encryption is a fundamental aspect of data security, as it protects sensitive information during storage and transmission. This ensures confidentiality, allowing only authorized individuals to access the information while maintaining integrity against unauthorized alterations.

In contrast, decryption is the process of converting the ciphertext back into plaintext; authentication verifies the identity of a user or system rather than protecting data; and hashing generates a fixed-length string from input data, primarily for data integrity checks, but does not allow for the original data to be recovered.