Network Encryption Technology Changing the Future

What is Network Encryption?

Network Encryption is a network security process that uses network transfer layer cryptographic services above the level of data link but below the level of application. Network transmission capacities are Layers 3 and 4 of Open Systems Interconnection (OSI), the layers for connectivity and for routing between the two endpoints. Network encryption is invisible to the end user and is operated by any other encryption process using existing network services and application software. The data is only encoded during transit and exists on the hosts of origin and destination as plain text.

Do networks need encryption?

Encryption is an efficient and popular way to protect network data. The process of encryption hides data or the content of a message so that only through the corresponding decryption process the original information can be recovered. Encryption and decryption are common cryptography techniques - the scientific field behind secure communication.

There are many different processes of encryption and decryption (called algorithms). Especially on the Internet, the details of those algorithms are very difficult to keep secret. Cryptographers are aware of this and design their algorithms to function even if their details are publicly available. Most encryption algorithms provide protection through key use.

Traditional Transmission

Coaxial Cable

Coaxial cables are copper cables specifically designed to block signal interference, with metal shields and other components. Cable TV companies mainly use this to connect customer homes and companies to their satellite antenna systems. A single, thicker wire includes a coaxial cable. Many people who use this kind of cable claim that twisted pairs have a better bend radius are much more flexible in their choice of network topology.

Twisted Pair Cable

Twisted pair cabling is a type of cable in which two single-circuit conductors are twisted together in order to improve electromagnetic compatibility. Experts say that twisted pair cables are often used to prevent certain types of signal interference. In various types of installations two different types of twisted pairs, unshielded twisted pairs (UTP) shielded and twisted pairs (STP) are used. Cable STP can also contribute to grounding. The STP cable also can provide grounding.

Radio waves & Microwaves

Radio waves form part of the electromagnetic spectrum. They do not need a medium to travel. An electric wave and a magnetic wave is composed of a radio wave. The 2 waves move together, creating one another as the wave goes through any medium, be it air, wire or what we call space. Radiofrequency is a form of wireless electromagnetic transmission. RF signals between 3 kHz and 300GHz are easily generated. Their property allows them to penetrate objects and travel far distances in wireless communication.

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Network Encryption Hardware

Risks and threats are increasing, and companies and other essential infrastructure are constantly being hampered. Businesses around the world are therefore always looking for economically viable and robust products that enhance the security of the network and offer customers enhanced experience. Hardware devices are vital for performing processing functions, such as high speed and low latency, in the network encryption market and provide robust safety. In addition, hardware components provide enhanced safety against endpoints, networks and applications threats.

Emerging verticals and Network Encryption Technology

Telecom & IT

IT solutions and services providers, consultancies, Internet service providers (ISPs) and communication companies form part of the telecommunications and IT verticals. Bring your own device (BYOD) has increased the necessity to secure data transfers over the network and comply with the industry's regulations by developing innovative technologies and increasing use of the internet and moving devices within an organization. The network encryption solutions of telecom companies and the IT services providers also provide business-critical information for security. In addition, online fraud is a key issue for cyber experts, network operators, service providers and users around the world. Companies are conducting employees and customers data security awareness programs.

Banking, Financial Services, and Insurance (BFSI)

The BFSI vertical is vulnerable to data violations in a digitally interconnected world. The vertical processing and transaction technologies are constantly upgraded and require end-to-end security solutions to optimize operations against both internal and external threats. The safety of payment data transmitted over the network becomes a priority for an organization in BFSI vertical with services such as smart banking, internet banking, and mobile banking. It makes the industry an appealing target for fraudsters to exploit sensitive customer data. Network encryption solutions are employed in this industry to control and secure customer-sensitive data and deliver protection to their company from data breach risk.

Media & Entertainment

Digital broadcasting requires continuous encryption and decryption in real time for streaming applications, to ensure content is not compromised in transit. This content is protected by a conditional access system (CSA), ensuring that certain criteria are met before a film or series is accessed. Each segment of the data stream needs cryptography with a constantly changing, encrypted "control word". Keys have to be generated and forwarded ahead of the content. Latency must be addressed in order to provide a seamless experience, and the high-performance HSM is a suitable tool for this. In fact, high-quality keys are rapidly being generated, stored and used to secure the associated data transfer.

Government

Government offices can protect themselves sensibly from known threats. For example, firewalls can be set up to prevent incoming attacks and VPNs and HTTPS can be used to protect in transit data. However, the weakest line of defense for a department is its own employees. Governments and companies both rely on strong (highly secure) encryption to protect personal information, intellectual property, and state secrets. Legislative efforts to weaken this encryption threaten critical data security and integrity. Government agencies must have adequate defenses, and robust encryption can form a strong first (and ultimate) defense line.

To Sum Up

Network security has always been more important than users know. Fallback, surveillance and filtering have always been available but were invisible. Many application owners feel that their systems work on a pure IP infrastructure, but there is nothing more to do with the truth that business networks are highly structured. Today's network products feature a wide range of one-point security solutions from simple authentication mechanisms to comprehensive identity management. The bottom line is that, the Global Network Encryption Market shows a high potential of rising at a CAGR of 11.4% over the estimated period.

KBV Research is a global market research and consulting company serving all kinds of business verticals, government and non-governmental organizations, and not-for-profit organizations.