Encyclopedia

End-to-end-encryption

Entersekt | Encyclopedia | End-to-end-encryption
What is end-to-end-encryption?

End-to-end encryption is a means of sharing data securely between a sender and receiver. The data is secured between these two points using cryptographic key pairs. As a result, no data is stored on a server and no third parties have access to the data.

The data is encrypted by an algorithm that changes the text characters in the data into an unreadable format. It only appears in decrypted form at the other ‘end’, in other words on the receiver’s device.

What are end-to-end encryption keys?

End-to-end encryption solutions use encryption keys called cryptographic keys. Cryptographic keys work in pairs. One is called a public key. This key encrypts the data and can be shared and used by anyone. The private key is stored on the receiver’s device, is private and is used to decrypt the message or data. The private key is only available to the receiver.

Why is end-to-end encryption important?

This type of encryption is more secure than older encryption types like Secure Sockets Layer (SSL)/ Transport Layer Security (TLS). End-to-end encryption also ensures privacy which is vital for financial transactions. This security standard protects banks and their customers from cyber attacks.

How does end-to-end encryption work?

Cryptography is what keeps end-to-end encryption secure. Basically, information is transformed into an unreadable format by the public key and then transmitted to the receiver. Only the receiver, with the private key, can decrypt the information. With end-to-end encryption, the data is encrypted or secure when it’s transmitted between devices, but also it is never decrypted on a server because the server cannot access the decryption keys, nor any other third parties.

How does end-to-end-encryption work in banking online?

Digital banking transactions are vulnerable to digital banking fraud, if financial institutions don’t secure their platform. In a payment scenario, a cardholder’s data, submitted during a payment flow, must be kept secure and only accessible by the authorized recipient. To achieve this, the data is encrypted. In this case, the payment gateway performs the encryption. Fraudsters cannot access the data as they don’t possess the private key that decrypts the data.

Additional resources:


Keywords:

End-to-end encryption | Encryption | Digital banking
E