What is Encryption?

Definition: The process of converting data into a coded form so it can only be read by authorized parties using a key. Encryption helps protect sensitive information from interception or unauthorized access.

Where encryption is used in gambling platforms:

• Data in transit: HTTPS/TLS protects traffic between user devices and the platform (logins, deposits, bets).
• Data at rest: Databases and backups are encrypted to protect stored information (player profiles, transaction logs).
• Payments and KYC/AML data: IDs, documents, and financial details require strong protection.

Common encryption standards and technologies:

• TLS 1.2/1.3 for secure web connections.
• AES-256 for encrypting stored data.
• Hashing (e.g., bcrypt/Argon2) for passwords (note: hashing is not the same as encryption; passwords should be hashed, not encrypted).
• Key management (KMS/HSM) to securely store and rotate keys.

Why it matters:

Encryption supports player trust, reduces breach impact, and is often required by security frameworks and compliance expectations (e.g., safeguarding personal and financial data).

Key considerations:

• Use modern cipher suites and disable legacy protocols.
• Implement secure key rotation and access controls.
• Ensure encryption is end-to-end across integrated third-party services (PSPs, KYC vendors).