Data privacy has become a fundamental right in the digital age. Every day, businesses of all sizes generate, store and transmit enormous volumes of sensitive information: customer data, financial records, intellectual property and internal communications. Protecting this information is no longer just a best practice -- it is a legal obligation in most jurisdictions.
Threats are becoming increasingly sophisticated. According to IBM's Cost of a Data Breach report, the average cost of a data breach in 2025 exceeded $4.8 million. And it is not only large corporations that are targeted: SMEs are frequent victims precisely because they often have weaker defences. Encryption is the first and most effective line of defence, ensuring that even if an attacker gains access to your data, they cannot read or use it.
What is data encryption?
Encryption is the process of transforming readable data (plaintext) into an unintelligible format (ciphertext) using a mathematical algorithm and a secret key. Only someone who possesses the correct key can reverse the process and access the original information. There are two main families of encryption:
- key Symmetric encryption: uses the same key for both encryption and decryption. The current standard is AES-256 (Advanced Encryption Standard with a 256-bit key), considered unbreakable with current technology. It is fast and efficient, ideal for encrypting large volumes of data at rest.
- sync_lock Asymmetric encryption: uses a key pair (public and private). Algorithms such as RSA (2048 or 4096 bits) and ECC (Elliptic Curve Cryptography) allow two parties to exchange information securely without sharing a pre-existing secret key. Widely used in TLS/SSL and digital signatures.
In practice, most modern systems combine both approaches: asymmetric encryption is used to securely exchange a symmetric session key, and that symmetric key encrypts the actual data. This hybrid model provides the security of asymmetric encryption with the speed of symmetric encryption.
Encryption at rest: protecting stored data
Encryption at rest protects data when it is physically stored on disk, whether on a server, a NAS, a cloud storage system or a backup tape. The goal is to ensure that if a disk is stolen or a physical server is compromised, the data remains unreadable.
The most common technologies for at-rest encryption include:
- check_circle LUKS (Linux Unified Key Setup): native volume-level encryption for Linux. Protects entire partitions transparently to applications.
- check_circle BitLocker: Microsoft's full-disk encryption solution for Windows Server environments.
- check_circle Database encryption (TDE): Transparent Data Encryption encrypts data files in SQL Server, Oracle or PostgreSQL without modifying applications.
- check_circle Encrypted backups: solutions such as Veeam Backup allow you to encrypt backup copies with AES-256, both in the local repository and in the offsite cloud repository.
Key fact:
Encryption at rest is mandatory under Article 32 of the GDPR for sensitive personal data. An unencrypted disk containing customer data that is stolen constitutes a reportable breach to the data protection authority within a maximum of 72 hours.
Encryption in transit: securing data in motion
When data travels between systems -- whether between a browser and a web server, between two data centres, or between an application and its remote database -- it is vulnerable to interception. Encryption in transit ensures that any data captured during transmission is useless to an attacker.
The main technologies include:
- lock TLS 1.3 (Transport Layer Security): the standard protocol for encrypting web communications (HTTPS), email, APIs and any TCP connection. TLS 1.3 removed weak algorithms, reduced handshake latency and is the currently recommended version.
- vpn_lock VPN (Virtual Private Network): creates an encrypted tunnel between two points on the network. Protocols such as WireGuard or IPsec encrypt all traffic between offices and data centres.
- cloud_sync Encrypted replication between data centres: in offsite backup or disaster recovery environments, data travels encrypted between the primary and secondary data centre, preventing exposure during transfer.
At EasyDataHost, all communications between our clients and our infrastructure use TLS 1.3 as a minimum. Replication between data centres for Veeam Offsite Backup services is performed over encrypted channels, ensuring data never travels in plaintext.
End-to-end encryption: total control
End-to-end (E2E) encryption takes protection a step further: data is encrypted at the source (the client) and only decrypted at the final destination. Not even the infrastructure provider hosting the data can read it, as they have no access to the decryption keys. This model is known as zero-knowledge encryption.
Practical examples of end-to-end encryption in enterprise environments:
- enhanced_encryption Client-side encryption in S3: when using Object Storage S3, applications can encrypt objects before uploading them. The provider stores encrypted data that it cannot access.
- enhanced_encryption Veeam source-side encryption: Veeam Backup encrypts data before sending it to the cloud repository. The encryption key is managed by the client, not the provider. This ensures total confidentiality even against unauthorised access to the storage.
- enhanced_encryption VM-level disk encryption: virtual machines can use LUKS or BitLocker internally, so data remains encrypted even if a snapshot or backup is extracted from the hypervisor.
GDPR and regulation: legal encryption obligations
The General Data Protection Regulation (GDPR) does not explicitly mandate encryption in all cases, but strongly recommends it as one of the appropriate technical measures. In practice, most data protection authorities consider it a basic security measure.
The key regulatory points regarding encryption are:
- gavel Article 32 of the GDPR: requires organisations to implement appropriate technical and organisational measures to ensure a level of security appropriate to the risk, including encryption of personal data.
- gavel Article 34 of the GDPR: if data affected by a breach was encrypted, the organisation may be exempt from the obligation to individually notify affected parties, as the data is unintelligible without the key.
- gavel LOPDGDD in Spain: Organic Law 3/2018 on Data Protection and the Guarantee of Digital Rights complements the GDPR with additional requirements for data processing within Spanish territory.
- gavel ENS (National Security Framework): mandatory for public bodies and their suppliers, it establishes encryption as a security measure at medium and high levels.
Penalties for GDPR non-compliance can reach EUR 20 million or 4% of the annual global turnover of the company. In Spain, the AEPD (Spanish Data Protection Agency) has imposed significant fines on companies that failed to apply adequate encryption measures. Visit our Compliance page to learn about the certifications that underpin our infrastructure.
Comparison table: types of encryption
Each type of encryption protects against different threats. The following table summarises the key differences:
| Characteristic | At rest | In transit | End-to-end |
|---|---|---|---|
| Scope | Data stored on disk | Data moving across the network | From source to final destination |
| Protects against | Physical theft, unauthorised storage access | Interception, MITM attacks, sniffing | Provider access, internal breaches |
| Technologies | AES-256, LUKS, BitLocker, TDE | TLS 1.3, IPsec, WireGuard | Client-side AES-256, PGP, Veeam E2E |
| Example | LUKS-encrypted disk on a server | HTTPS when accessing a web application | Veeam backup encrypted with client key |
A complete encryption strategy must cover all three layers. It is not sufficient to encrypt data in transit if it is then stored in cleartext, nor to encrypt at rest if it is transmitted without protection.
How EasyDataHost protects your data
At EasyDataHost, data security is a design principle, not an afterthought. Our infrastructure incorporates encryption at every layer:
- check_circle Object Storage S3 with AES-256 encryption: our Object Storage S3 service supports server-side encryption with AES-256 and optional client-side encryption, with no additional charges for traffic or requests.
- check_circle End-to-end encrypted Veeam Backup: as a Veeam Gold Partner, we offer cloud repositories with client-managed AES-256 encryption. Data travels and is stored encrypted, with WORM immutability.
- check_circle Regulatory compliance: our Tier III+ data centre in Madrid holds ISO 27001 certification, ENS Alto and GDPR compliance. All data remains within Spanish territory.
- check_circle TLS 1.3 on all communications: APIs, management panels, inter-node replication and backup transfers use TLS 1.3 as the minimum standard.
Security checklist: encryption for your business
Use this checklist to assess the state of encryption across your organisation:
- check_circle All production server disks are encrypted with AES-256 (LUKS, BitLocker or equivalent).
- check_circle Backup copies are encrypted in both the local repository and the offsite repository.
- check_circle All external connections use TLS 1.2 or higher (ideally TLS 1.3).
- check_circle Databases containing sensitive data have TDE or column-level encryption enabled.
- check_circle Encryption keys are managed securely with periodic rotation and stored separately from the protected data.
Conclusion
Encryption is not an optional technology or a luxury reserved for large corporations. It is a fundamental security measure and, in many cases, a legal obligation. Protecting your data with at-rest, in-transit and end-to-end encryption drastically reduces the impact of a security breach and demonstrates to your customers, partners and regulators that your organisation takes privacy seriously.
- arrow_right Implement AES-256 at-rest encryption for all stored sensitive data.
- arrow_right Use TLS 1.3 for all inter-system communications.
- arrow_right Consider end-to-end encryption for especially sensitive or regulated data.
- arrow_right Verify that your strategy complies with GDPR, LOPDGDD and ENS as applicable to your sector.
- arrow_right Manage encryption keys with periodic rotation and restricted access.
If you want to assess the encryption posture of your infrastructure or need a storage and backup solution with built-in encryption, our engineering team can help. Contact us for a personalised consultation.