Encryption
Encryption has long been used by militaries and governments to facilitate secret communication. It is now commonly used in protecting information within many kinds of civilian systems. For example, the Computer Security Institute reported that in 2007, 71% of companies surveyed utilized encryption for some of their data in transit, and 53% utilized encryption for some of their data in storage. Encryption can be used to protect data "at rest", such as information stored on computers and storage devices (e.g. USB flash drives). In recent years, there have been numerous reports of confidential data, such as customers' personal records, being exposed through loss or theft of laptops or backup drives; encrypting such files at rest helps protect them if physical security measures fail. Digital rights management systems, which prevent unauthorized use or reproduction of copyrighted material and protect software against reverse engineering (see also copy protection), is another somewhat different example of using encryption on data at rest.
History of cryptography
Beginning around 1990, the use of the Internet for commercial purposes and the introduction of commercial transactions over the Internet called for a widespread standard for encryption. Before the introduction of the Advanced Encryption Standard (AES), information sent over the Internet, such as financial data, was encrypted if at all, most commonly using the Data Encryption Standard (DES). This had been approved by NBS (a US Government agency) for its security, after public call for, and a comptetition among, candidates for such a cypher algorithm. DES was approved for a short period, but saw extended use due to complex wrangles over the use by the public of high quality encryption. DES was finally replaced by the AES after another public competition organized by the NBS successor agency, NIST. Around the late 1990s to early 2000s, the use of public-key algorithms became a more common approach for encryption, and soon a hybrid of the two schemes became the most accepted way for e-commerce operations to proceed. Additionally, the creation of a new protocol known as the Secure Socket Layer, or SSL, led the way for online transactions to take place. Transactions ranging from purchasing goods to online bill pay and banking used SSL. Furthermore, as wireless Internet connections became more common among households, the need for encryption grew, as a level of security was needed in these everyday situations.