Which encryption type is most commonly used for secure online transactions?

The most commonly used encryption type for secure online transactions is asymmetric encryption. This method utilizes a pair of keys—one public and one private. When a user initiates a secure transaction, they use the public key to encrypt the data. Only the owner of the private key can decrypt this data, ensuring that even if the data is intercepted, it cannot be read by unauthorized parties.

Asymmetric encryption is particularly advantageous for secure online transactions because it allows for secure key exchange and digital signatures. This means that recipients can ensure that the data they receive has not been tampered with and can verify the identity of the sender.

While symmetric encryption, which uses a single secret key for both encryption and decryption, is faster, it requires both parties to securely share the secret key beforehand, which can present vulnerabilities. Hashing does not involve encryption but rather generates a fixed-size string from input data and is primarily used for data integrity checks rather than securing transactions. Fernet is a specific type of symmetric encryption that offers some benefits for data integrity and authentication but is not the dominant standard for secure online transactions.