Base64 encoding is a method of converting binary data into a text string that uses a limited set of characters. This encoding is particularly useful when dealing with data that needs to be transmitted over media that only supports text, such as email or certain protocols.

In Base64, every three bytes of binary data are transformed into four characters from a specific set of 64 characters, which include uppercase letters, lowercase letters, digits, and a few symbols (typically `+` and `/`). This ensures that the encoded data remains safe for various text-based communications. Base64 is often used in cryptocurrency applications for encoding data formats like addresses or transactions.

This helps ensure data integrity and allows for easy representation of otherwise complex binary data. Given the need for secure communication and data handling in this space, Base64 encoding plays a significant role in ensuring that products and services can exchange information smoothly and accurately. Overall, it simplifies data handling while minimizing errors associated with non-text formats.