Encryption supports data privacy by converting sensitive information into a coded format, making it unreadable to unauthorized users. This ensures that even if data is intercepted during transmission or accessed illegally, it remains secure and unusable without the proper decryption key. Encryption is crucial for protecting personal, financial, and proprietary information in various contexts, including online transactions and communications. It enhances trust between users and service providers, as well as compliance with data protection regulations. By implementing robust encryption practices, organizations can effectively safeguard their data against breaches and unauthorized access.