What is the primary purpose of data encryption?

The primary purpose of data encryption is to convert information into a coded format. This transformation makes the data unreadable to unauthorized users, thus protecting the confidentiality of sensitive information. By rendering data into a format that cannot be easily deciphered without the appropriate decryption key, encryption serves as a critical security measure to safeguard data against interception and unauthorized access during transmission or when stored.

In the context of the other options, improving network performance relates to optimizing data flow and reducing latency, which is not directly associated with the goals of encryption. Monitoring network traffic involves observing and analyzing data packets traversing a network, which is unrelated to the protective layering that encryption provides. While authenticating users is essential for verifying identities and granting access, it does not encapsulate the function of converting data into a secure format, which is the essence of encryption.