Protecting sensitive data is paramount in any database system. SQL Server offers various encryption methods to safeguard data at rest and in transit. Encryption transforms readable data into an unreadable format, known as ciphertext, using a cryptographic key. This makes the data inaccessible to unauthorized individuals even if they gain access to the database. Encryption is particularly important for storing personally identifiable information (PII), financial data, and other confidential information. SQL Server encryption can be applied at different levels, including column-level encryption, database-level encryption, and transparent data encryption (TDE). Column-level encryption protects specific columns within a table, while database-level encryption protects the entire database. TDE, a common choice, encrypts the entire database file on disk, making it inaccessible without the decryption key. This layered approach allows for granular control over data security.