What role does encryption play in protecting sensitive data?

Encryption plays a critical role in safeguarding sensitive data by transforming it into an unreadable format unless decrypted with an appropriate key. When data is encrypted, it becomes unintelligible to anyone who does not have the correct decryption key, ensuring that even if the data is intercepted or accessed without authorization, it remains secure and protected from unauthorized viewers. This method is essential for maintaining confidentiality and integrity in data transmission and storage.

The other options do not accurately describe the primary function of encryption. Reducing file size pertains to compression rather than security. While there might be the perception that encryption could impact performance regarding data transfers, its main purpose is not to speed up these transfers but rather to secure them. Lastly, combining multiple data sources relates more to data management and integration techniques rather than encryption.