Certified Bitcoin Professional Practice Exam

What does an encryption algorithm do to plain text?

1. Transforms it into secret text

2. Transforms it into cipher text

3. Keeps it in its original form

4. Encrypts it for later use

The correct answer is: Transforms it into cipher text

An encryption algorithm is designed to take plain text, which is readable and understandable, and transform it into cipher text. Cipher text is a form of text that has been altered through encryption, making it unreadable to anyone who does not possess the appropriate decryption key or algorithm. This transformation is essential for maintaining confidentiality and security in data transmission and storage. The process ensures that sensitive information, such as personal data or payment details, remains protected from unauthorized access. When someone encrypts plain text, they apply a mathematical function to the data, resulting in cipher text that appears as a random string of characters. This is a crucial aspect of cryptography, enabling secure communications and data protection online.