Key Dependent Encoding
Encryption, or Encoding, simply is the art of leaving data in
obfuscated form in order to keep it secure.
It could be as simple as replacing all characters in a text file with those
from a predetermined set in a manner that has the original text having
a direct correlation with the encrypted / encoded version.
An example of this is seen in the Base-64 Encoding System.
Encryption could also mean adding junk data to an original data
in such a way that the original data is completely defaced but can
still be comfortably extracted from the encrypted version.
Encryption processes must always be consistent: i.e. the same type of
encryption, or encoding, carried out on the same data or file must always
produce exactly the same obfuscated output.
But with key dependent encryption, every unique key produces a completely
different encoded set or obfuscated data.
This ensures better security of data since brute-forcing becomes very difficult
without knowledge of the secret key used.
Also, the longer the key used, the more useless brute-forcing becomes.
This means that different individuals or firms can employ the same encryption process,
but have their own unique secret key (Private Key) to encrypt data with.
Such encrypted data cannot be comfortably decrypted by a second firm using the
same encryption process if the first firm can keep its key secret enough.