Encryption algorithms secure digital communication by applying mathematical formulas to data, transforming it into a coded format that is unreadable to unauthorized users. These algorithms utilize keys to lock (encrypt) and unlock (decrypt) the information, ensuring that only individuals with the correct key can access the original content. Common encryption methods include AES (Advanced Encryption Standard) and RSA (Rivest-Shamir-Adleman). Implementing strong encryption standards is crucial for protecting sensitive data against eavesdropping and breaches.