What is data encryption in cloud technology?

Data encryption in cloud technology refers to the process of encoding data in such a way that only authorized parties can access it. This involves transforming plain text into a secured format, often using algorithms and encryption keys. The primary purpose of encryption is to protect sensitive information from unauthorized access, ensuring that even if data is intercepted, it cannot be easily understood without the corresponding decryption key.

This is particularly crucial in cloud environments, where data is often stored off-site and must traverse the internet, which might expose it to various security threats. Effective encryption not only secures personal and sensitive information but also helps organizations comply with data protection regulations, thereby maintaining trust with users and stakeholders.

The other options do not accurately describe encryption. Increasing data storage capacity pertains to data management strategies. Compressing data relates to reducing file sizes for efficiency, while creating back-up copies focuses on data recovery rather than securing the data itself. Each of these processes plays a role in data management and security but does not capture the essence of what data encryption fundamentally involves.