Encryption is a process of transforming data into a form that cannot be read by anyone who does not have the right key. This key is used to encrypt and decrypt the data, allowing only those with the correct key to access the data. Encryption is used to protect sensitive data, such as financial information, from unauthorized access. By using encryption, data is made unreadable to anyone who does not have the correct key, ensuring that only those with the correct key can access the data. In the case of a keystore file, the password that is provided is used to encrypt the file, making it unreadable to anyone who does not have the correct password. This ensures that only those with the correct password can access the data stored in the keystore file, providing a secure way to store sensitive data.