What is an encryption algorithm used for?

The purpose of an encryption algorithm is to convert data into a coded format, ensuring that only authorized users can access and read the information. This process is essential for protecting sensitive data from unauthorized access and data breaches. By transforming plain text into ciphertext, encryption algorithms use specific keys to lock and unlock this information, maintaining confidentiality and integrity.

The other options describe different functions. For instance, compressing data helps reduce its size for quicker transmission, enhancing software performance relates to optimizing how applications run, and creating backups involves duplicating data for recovery purposes, none of which directly involve the protection or coding of data to prevent unauthorized access. Thus, the correct answer relates specifically to the core function of encryption: safeguarding data through coded formats.