In terms of data privacy, what is the key benefit of encoding data?

Encoding data primarily serves as a mechanism to transform information into a format that is not easily understandable by unauthorized users. This process of obfuscation adds a security layer, ensuring that even if data is intercepted or accessed without permission, it remains unintelligible without the proper decoding key or method. This is critical in maintaining data privacy, as it reduces the risk of sensitive information being misused or exposed.

The other options, while related to data management, do not specifically address the primary goal of encoding in the context of data privacy. Improved data compression relates to reducing file size, which does not inherently protect data from unauthorized access. Increased data retrieval speed focuses on efficiency in accessing information but doesn't contribute to its security. Lastly, reduction of data redundancy involves eliminating duplicate data to enhance storage efficiency, which is also unrelated to protecting data from unauthorized access.