Symmetric encryption is a method where the same key is used for both encrypting and decrypting data. In simple terms, both the sender and the recipient share a secret key that must remain confidential.When a piece of information, like a transaction in a digital currency system, is encrypted with a symmetric key, it becomes unreadable to anyone who doesn’t have that key. The recipient, who also possesses the key, can decrypt the message to access the original data.This type of encryption is fast and efficient, making it suitable for encrypting large amounts of data. However, the main challenge is key management. If the key is exposed or intercepted, an unauthorized party can easily decrypt the information, compromising security.For secure communications and transactions, both parties must ensure that the key is transmitted and stored safely. Various algorithms, like AES (Advanced Encryption Standard), are commonly used for symmetric encryption, providing a robust method for protecting sensitive information.