Encrypt data on the wire (TLS) and on disk (at-rest) so neither a network eavesdropper nor a stolen drive yields plaintext.
Plain English: encryption in transit (TLS/HTTPS) scrambles data while it travels the network so eavesdroppers can't read it. Encryption at rest scrambles data sitting on disk so a stolen drive or leaked backup is useless. You need both, since they protect against different attackers.
Two complementary protections. Encryption in transit secures data moving over a network (TLS for HTTP, mTLS between services) so anyone sniffing the wire sees ciphertext. Encryption at rest secures stored data (disk/volume encryption, database/field-level encryption, encrypted backups) so anyone who obtains the physical media or files can't read them. Symmetric crypto (AES) does the bulk work; asymmetric crypto and key management handle key exchange and rotation.
Data is exposed in two places: while moving and while sitting still. A network attacker can intercept unencrypted traffic; a thief, insider, or misconfigured bucket can expose unencrypted storage. In-transit encryption defeats eavesdropping and tampering on the wire; at-rest encryption defeats stolen-disk, leaked-backup, and snapshot-exposure scenarios. Compliance regimes (PCI-DSS, HIPAA, GDPR) generally mandate both.
In transit: TLS does an asymmetric handshake to authenticate the server (via certificates) and agree a symmetric session key, then encrypts the stream with AES; mTLS adds client-cert authentication for service-to-service. At rest: data is encrypted with a symmetric data key before hitting disk; that data key is itself encrypted by a master key held in a KMS/HSM (envelope encryption), enabling rotation without re-encrypting everything. Sensitive fields can be encrypted at the application layer so even the database never sees plaintext.
TLS on every API call plus at-rest encryption of card data in the ledger; both are hard PCI-DSS requirements
End-to-end encryption means messages are encrypted on the sender's device; even the server stores only ciphertext in transit and at rest
Server-side encryption with KMS-managed keys encrypts every object at rest; TLS protects it in transit to and from the store