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Making Sense of Secure File Sharing Systems

Published on 15 November 16

More and more companies are now considering the option of storing their classified information from physical data storage locations to virtual data rooms.

In one particular survey it was seen that more than 55% of companies use some form of cloud data storage in addition to physical data rooms. This is because not only does a virtual data room help in saving physical space; it also makes for effortless file access. Rather than having to probe around numerous physical filing cabinets in order to discover a particular document, digital files that are stored in virtual data rooms can be accessed even remotely, from the convenience of a desktop or any electronic device.

Making Sense of Secure File Sharing Systems - Image 1

Nevertheless, when it comes to virtual data storage, not all options offer robust document security of digital files. Conventional cloud storage systems simply lack the requisite level of security that is needed to store classified information such as trade secrets, intellectual property, and consumer data and like. This is why, a number of businesses and companies are choosing to store their digital documents in specified virtual data storage spaces that provide robust, increased and progressive security systems.

Let's look at data encryption as a safety feature offered by virtual data storages to protect documents.

Encrypting information

The encryption of data is one of the most important yet common types of security that is offered by a virtual data repository. In actuality, the intention of information encryption is to ensure classified data is indecipherable with the help of an algorithm and key. For example, when a document is uploaded to a virtual data room and secured through data encryption, the content within the document is spontaneously enciphered so that it becomes incoherent to the naked eye. From there, the contents of the data can only be decoded by another user that carries a specific key to decrypt the information.

The encryption of information in a virtual data room plays a very critical role in maintaining the safety of documents stored in the virtual space. Data encryption ensures that only permitted users or computers are able to access the decoded versions of the files through exclusive authorisation. In this manner, in the event of any kind of security hack or data breach, the hacker can only view the encrypted version of the document and is unable to deduce or derive any classified data or content out of it.

Data encryption was first employed by government and military organisations to share sensitive information over the Internet safely. Today, however it is used in almost every industry, especially in the financial sector, for sharing of sensitive files and online credit card processing.

Without the safety feature of encrypting information, documents uploaded to a virtual data room would be at a grave risk of being viewed by unauthorised entities. Virtual data rooms that employee intricate security combinations and data encryption that is intentionally designed to protect data files at rest and in transit can help every organisation be additionally assured of the safety of their digital documents in the data room.

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