Encoding: transforms data into another format using a scheme that is publicly available so that it can easily be reversed and can be transmitted without danger over a communication channel or stored without danger on a storage medium.
Algorithms Used in Encoding: ASCII, Unicode, URL Encoding, Base64.
Example: Binary data being sent over email, or viewing special characters on a web page.
Encryption: transforms data into another format in such a way that only specific individual(s) can reverse the transformation.
Encryption method uses secret keys : the algorithm is well-known, but the encryption and decryption process requires having the same key for both operations, and the key is then kept secret.
Algorithms Used in Encryption: AES, Blowfish, RSA ...
Example: Sending someone a secret letter that only they should be able to read, or securely sending a password over the Internet.
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