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Encryption is a method of scrambling data using a secret key, allowing only authorized organizations to access the original information. It serves as a vital tool for data protection, often mandated by regulations, particularly for sensitive data. Proper key management is crucial; for instance, one wouldn't hide their house key under the mat, as it's the first place thieves would check. Similarly, in data protection, encryption keys must be safeguarded through specialized methods to prevent unauthorized access and ensure the effectiveness of the encryption process.