VPN Encryption Explained – A Quick Overview

Illustration of VPN Encryption

Protecting your business’s online presence and activities is now more important than ever due to the rise of cyberattacks over the past few years. While discussing VPN encryption, things get technical, but don’t worry! This blog provides a quick overview of encryption so that it is easy for everyone to understand. Without further ado, let’s dig into VPN encryption explained.

VPN Encryption Explained – What is it?

What is VPN Encryption?

VPN encryption is a secret language or code only you and your intended receiver can decipher or understand. A VPN encrypts your data, making it unusable for anyone trying to snoop into your online activities. This protection shields your personal and confidential data and keeps it safe from your ISPs, hackers, and cybercriminals.

In technical terms, VPN encryption only encrypts your data before letting it go out of your device by employing complex algorithms. The VPN server receives this complex algorithm, transfers it to an encrypted tunnel, decodes it there, and sends it to your intended receiver.

Why Should Businesses Care About VPN Encryption?

Business Login via VPN

1. Protect Sensitive Data

According to IBM, a data breach typically cost $4.45 million in 2023. This goes beyond just a figure for businesses since your reputation and hard-earned cash are on the line. VPN encryption ensures that your private information, including bank records and client details, is secure and inaccessible to unauthorized parties.

2. Enhance privacy

It’s true when they say privacy matters. Protection of your company’s online activities is essential, especially with the rise in data mining and cyber snooping. Your online behavior is difficult for others to trace as VPN encryption hides your internet traffic.

Consider a marketing firm that does market research. If unprotected, the agency’s online activities could reveal their strategies and client information. VPN encryption ensures these activities remain private, safeguarding business strategies from competitors.

3. Secure Remote Work

Many businesses have adopted remote work policies as a result of the pandemic. Although this offers flexibility, it opens the door to various security risks. For remote workers, a VPN may create a secure connection that protects company data even when accessed over home networks or public Wi-Fi hotspots.

Remote employees frequently require access to sensitive corporate data from many places. Without a VPN, attackers can intercept data concealed on public networks. VPN encryption guarantees that data is protected regardless of an employee’s location.

4. Compliance with Regulations

Many industries have rigorous data protection rules. The General Data Protection Regulation (GDPR) is compulsory for firms operating in the European Union, while the Health Insurance Portability and Accountability Act (HIPAA) applies to the healthcare industry. Businesses may meet these regulatory requirements by securely sending data through VPN encryption.

There may be severe fines and legal repercussions for breaking data privacy regulations. Using VPN encryption, companies may show they are dedicated to maintaining regulatory compliance and data protection.

5. Prevent Bandwidth Throttling

Internet service providers (ISPs) frequently limit bandwidth based on your online activity, particularly at peak hours. As a result, your internet speed may drop, which can lower productivity. By hiding your activities from your ISP, a VPN prevents them from imposing connection restrictions.

Bandwidth limiting might be a major issue if your company uses high-speed internet for video conferencing or large data transfers. VPN encryption hides your online activities from your ISP, ensuring consistent internet speeds.

How Does VPN Encryption Work?

Not to sound too technical, but VPN encryption creates a safe “tunnel” that connects your computer to the internet. Here’s a quick summary:

  1. Your Device: You start with a device—laptop, phone, you name it.
  2. Encryption Protocols: The VPN uses encryption protocols (like OpenVPN or IKEv2) to scramble data.
  3. VPN Server: Your encrypted data travels to a VPN server.
  4. Decryption: The server decrypts the data and sends it to the internet. The response from the internet follows the same path back to you, staying encrypted all the way.

The process takes milliseconds, ensuring your internet experience is quick and flawless. Let’s go a little more into the essential components involved:

Encryption Protocols

Encryption protocols are the procedures used to build safe tunnels for your data. Here are some of the more popular ones:

  • OpenVPN: Known for its balance of security and speed, OpenVPN uses SSL/TLS for key exchange and can traverse firewalls and network address translators (NATs).
  • IKEv2/IPSec: Particularly good for mobile devices, IKEv2/IPSec is fast, secure, and stable. It reconnects fast if a connection is lost, making it perfect for mobile users.
  • L2TP/IPSec: Layer 2 Tunneling Protocol (L2TP) paired with IPSec for encryption. It is secure but may be slower owing to double encapsulation.
  • WireGuard: A newer protocol that promises better security and faster performance. It is gaining popularity due to its simplicity and effectiveness.

Data Encryption

Encrypting data refers to transforming readable data into a coded format. This involves:

  • Symmetric Encryption: Uses the same key for encryption and decryption. AES (Advanced Encryption Standard) is the most often used symmetric encryption for VPNs.
  • Asymmetric Encryption: Uses a pair of keys—public and private. RSA (Rivest-Shamir-Adleman) is a widely used asymmetric encryption method, often used for secure key exchange.

Handshake Process

The handshake procedure allows the VPN client and server to verify each other and create a secure connection. This involves:

  1. Client Request: The client sends a request to the server.
  2. Server Response: The server responds with a certificate containing its public key.
  3. Client Verification: The client verifies the server’s certificate and sends a pre-master secret encrypted with the server’s public key.
  4. Session Keys: The client and server generate session keys from the pre-master secret, which are used to encrypt and decrypt data during the session.

Types of VPN Encryption

Understanding the types of encryption can help you choose the right VPN for your business. Here are the most common types:

AES (Advanced Encryption Standard)

  1. Strength: Extremely strong with 256-bit encryption.
  2. Usage: Widely used across the industry, including by governments and cybersecurity firms.
  3. Why It Matters: AES-256 is considered virtually unbreakable, making it the gold standard for securing sensitive data.

RSA (Rivest-Shamir-Adleman)

  1. Strength: Excellent for key exchange processes.
  2. Usage: Often used in combination with AES for added security.
  3. Why It Matters: RSA ensures that the keys used for encryption and decryption are securely exchanged, adding an extra layer of security.


  1. Strength: Strong but less common than AES.
  2. Usage: Occasionally used in certain VPN services.
  3. Why It Matters: While still secure, Blowfish has gradually been replaced by more advanced encryption methods like AES.


  1. Strength: Highly efficient and secure.
  2. Usage: Often used in mobile and low-power devices.
  3. Why It Matters: ChaCha20 offers excellent performance and security, making it ideal for mobile applications.

Choosing the Right VPN Provider

Selecting the right VPN provider is crucial for ensuring robust security. Here are a few things to consider:

1. Encryption Standards

Ensure the VPN uses top-notch encryption standards like AES-256. This level of encryption is widely recognized as the gold standard for securing data.

2. No-Logs Policy

The provider should not keep logs of your online activities. This ensures your browsing history remains private even if the VPN server is compromised.

3. Speed

Opt for a VPN that offers high-speed connections. Slow speeds can hinder productivity, especially for businesses that rely on fast internet access for daily operations.

4. Compatibility

Make sure the VPN is compatible with all your devices and operating systems. The VPN should offer seamless integration, whether on Windows, macOS, iOS, or Android.

5. Customer Support

Reliable customer support is essential. In case of technical issues, you need a provider that offers prompt and effective assistance.

6. Additional Features

Look for features like kill switches, DNS leak protection, and split tunneling. These features can improve your VPN experience and provide added layers of security.

Introducing PureWL: Your Trusted White Label VPN Provider

Regarding VPNs, you need a provider that understands business needs. Enter PureWL—a top-tier white-label VPN provider. PureWL offers:

  • Customizable Solutions: Tailored to meet your business requirements.
  • High-End Encryption: Uses the best-in-class AES-256 encryption.
  • No-Log Policy: Your privacy is our priority.
  • Blazing Fast Speeds: No compromise on speed and performance.
  • 24/7 Support: Dedicated support to address any issues promptly.
  • Scalable Infrastructure: Easily scalable solutions to grow your business.

By partnering with PureWL, you can offer your clients a reliable and secure VPN solution under your brand name.

Final Thoughts

VPN encryption is necessary for organizations to safeguard their online operations and protect critical information. Understanding how it works and selecting the appropriate VPN provider may greatly improve your company’s security.  

So, are you ready to enhance your business’s security? Consider PureWL for a secure and reliable VPN solution. PureWL provides a partner who understands the complexities of company security and delivers solutions tailored to your specific requirements.