Encryption plays a critical role in communication systems by securing data and ensuring privacy. It transforms information into a coded format, making it accessible only to authorized parties who possess the decryption key. This protects sensitive information from unauthorized access, safeguarding personal data, financial transactions, and corporate communications. The significance of encryption also extends to compliance with data protection regulations and maintaining trust in digital interactions. Without strong encryption, data breaches could lead to severe financial and reputational damage for individuals and organizations alike.