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Encryption scrambles a message's contents so that only authorized individuals can access it. There are two main types: symmetric and asymmetric encryption. Symmetric encryption involves Alice encrypting a document with a password and sending it to Bob, who can't access it without the passphrase. The challenge arises in securely sharing the passphrase, as sending it via email is risky; others could intercept it, compromising the encryption. This issue highlights the need for a more secure method of sharing sensitive information.