The acronym 'SFTP' stands for Secure File Transfer Protocol. It is a secure version of the traditional FTP (File Transfer Protocol) used to transfer files over a network. SFTP provides encryption and secure access, ensuring that both the files being transferred and the credentials used for access are protected from unauthorized interception. By utilizing secure channels, SFTP is widely used in various industries for data management and sharing, particularly where sensitive information must be handled responsibly.