Encryption technology ensures the confidentiality of sensitive data by converting it into a format that cannot be read without the appropriate decryption keys. This process protects information stored on devices or transmitted over networks, securing it against unauthorized access or breaches. Encryption is vital in various sectors, including finance, healthcare, and telecommunications, where sensitive data such as personal identification and financial records must be safeguarded. By implementing strong encryption protocols, organizations enhance data security and build trust with their users.