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Encryption? Give it a rest
I recently watched a popular technology TV show that explained how Ethernet broadcasts all communications between two computers to all of the nearby computers, allowing a hacker with a sniffer (software that captures network traffic) to see other users' data.
This was true in the old shared-loop days prior to 1994, but today most enterprises transfer data on switched networks. Data is transferred from point to point with no visibility of that data by other network-attached devices.
This foils most sniffer-based hacking attempts from outside the corporate data centre. If the hacker is in the data centre itself, you have a very serious and very different problem. In that case the hacker could circumvent the security by loading the sniffer onto the server itself.
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