Encryption helps secure data transmissions by using cryptographic algorithms to convert readable information into an encoded format, making it inaccessible to unauthorized users. This process involves the use of keys for both encryption, which transforms data into an unreadable form, and decryption, which restores it to its original format. Encryption ensures confidentiality, integrity, and authenticity of the data being transmitted, mitigating risks associated with data breaches and unauthorized access. It is essential for secure communication over the internet, including transactions, emails, and sensitive information exchange.