Encryption Standards

Encryption Standards in a startup refer to the protocols and technologies used to protect sensitive data by converting it into unreadable code for unauthorized users. Encryption ensures secure communication, data privacy, and regulatory compliance, safeguarding business and customer information.

Key Encryption Standards for Startups

  1. AES (Advanced Encryption Standard)
    o AES-256, AES-128, and AES-192 are widely used for securing databases, files, and cloud storage.
    o Commonly applied in financial transactions, data protection, and cloud security.
  2. RSA (Rivest-Shamir-Adleman) Encryption
    o Uses public and private keys for secure communication.
    o Essential for email encryption, digital signatures, and authentication systems.
  3. TLS/SSL (Transport Layer Security & Secure Sockets Layer)
    o Encrypts web traffic, online payments, and API communications.
    o Ensures secure connections for e-commerce platforms and SaaS applications.
  4. End-to-End Encryption (E2EE)
    o Protects communication in messaging apps (e.g., WhatsApp, Signal) from interception.
    o Ensures only the sender and receiver can decrypt the data.
  5. SHA (Secure Hash Algorithm) for Password Protection
    o SHA-256 and SHA-512 securely hash passwords, preventing direct access in case of breaches.
    o Often used with salting techniques for stronger security.
  6. PGP (Pretty Good Privacy) & GPG (GNU Privacy Guard)
    o Encrypts email communications and file exchanges.
    o Used for data integrity verification and secure messaging.
  7. Homomorphic Encryption (For AI & Data Analysis)
    o Allows computing on encrypted data without decryption, maintaining privacy in processing.
    o Useful in secure cloud computing and AI-driven analytics.

Why Encryption Standards Matter for Startups

  • Protects Sensitive Business & Customer Data – Prevents unauthorized access or breaches.
  • Ensures Compliance with GDPR, CCPA, & HIPAA – Meets legal data security requirements.
  • Builds Customer & Investor Trust – Strengthens credibility in securing personal and financial information.
  • Prevents Cyber Threats & Insider Risks – Minimizes vulnerabilities from hacking or internal breaches.

Written by Swedish Ventures, Rolf Olsson. Remarks to this article could be sent to glossary@swedishventures.se.

ASO: DD-09-14