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What is Data Encryption? It's the practice of encoding information using cryptography in such a way that the information can only be decoded by a party with a corresponding key. It is in this way that an SSL/TLS Certificate protects your communication.
But obviously there's more to it than just that. Let's take a look at how an SSL/TLS Certificate enables an encrypted connection and how that encrypted connection keeps your communication safe from malicious third parties.
When you visit a website, your browser is making a connection with the web server that hosts the site. Most websites are traditionally served over HTTP (hypertext transfer protocol). Over HTTP, the connection is unencrypted and information is sent back and forth between the browser and the server in the open, meaning any interested third party can see it.
Obviously, a stranger being able to intercept or manipulate your communication is not ideal. This is where HTTPS and Encryption come into play. Encryption protects information sent between clients and servers by essentially scrambling the communication in a way that only someone with the correct key can read it. In order to do this a web server must have an SSL/TLS Certificate installed and must be served over HTTPS, a protocol for secure communications.
When you buy an SSL/TLS certificate and install it on your web server it enables the SSL/TLS protocol via which connections are encrypted. When a visitor reaches your site the visitor's browser and your web server perform what is colloquially called the "SSL handshake," wherein the two decide to use encryption and then exchange keys so that they can communicate with one another.
From this point forward, all communication will now be encrypted.
That's a good question, but a better question would be: what kind of website are you running? You see, all SSL/TLS Certificates – regardless of authentication level – provide the same industry-standard encryption. Encryption strength is not what differentiates and determines the value of an SSL/TLS Certificate. No, the authentication level does that.
If you're running a blog or a personal website – something that doesn't require your visitors to provide you with any personal details – then you still need encryption. After all, that's the direction the internet is heading. But all you should need is a Domain Validated certificate—where you only have to prove ownership over a domain.
If you're running a business, you also need encryption. Obviously. But you're going to need something more involved than just a DV SSL Certificate. You're going to need to invest in a certificate that also provides authentication. Depending on the kind of business you're running, and the level of brand recognition you're working with, you may want to go for an Organization Validation SSL Certificate, or even invest in an Extended Validation SSL Certificate. Either way, if you're buying an SSL Certificate for your company, it's vital that you invest in one with Business Authentication.
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