Definition ∞ Authenticated encryption simultaneously secures data privacy and confirms its unaltered condition. This cryptographic method ensures that data remains confidential from unauthorized access while also providing a mechanism to verify its integrity and authenticity. It prevents both eavesdropping and malicious modification of transmitted or stored information. A successful decryption confirms that the data has not been tampered with since its encryption by the legitimate sender.
Context ∞ Authenticated encryption is a foundational security primitive for digital asset transactions and blockchain communication, preventing unauthorized access and ensuring transaction veracity. Its robust application is critical for maintaining user trust and system reliability within decentralized finance platforms. Future advancements focus on post-quantum authenticated encryption schemes to safeguard against emerging computational threats.