TrueCrypt is a free, open-source disk encryption software application. Encryption (as well as decryption) falls in the domain of cryptographic technology. According to Wikipedia, encryption is the process of transforming information using an algorithm to an unreadable form accessible only to those who possess the security keys. The consequence of the procedure is encrypted information and its reverse process is known as decryption, i.e. converting the encrypted information back into a readable state.
There are two kinds of data on which encryption processes can be applied.
1. Data at rest, such as files on a hard disk or USB flash drives, operating system data, etc..
There have been numerous incidents where confidential data such as personal records on disks have been exposed through loss or theft of laptops and backup drives. Encryption is definitely required in such scenarios if physical security measures fail.
2. Data in transit i.e. data being transferred via networks such as internet, mobile phones, ATM’s, Bluetooth devices etc.
Data in transit can also be intercepted since it is extremely difficult to physically secure access to all networks, so its encryption is also mandatory.
TrueCrypt is software that encrypts data at rest (be it the data on hard disk or removable storage devices). It is compatible with all OS including Windows Vista/ XP, Mac OS X and Linux.