Quick Answer
The correct answer is the encrypt capability on the path `/transit/encrypt/app-key` and the read capability on the path `/transit/keys/app-key`. This is because the transit engine separates key management from data operations: the `encrypt` capability on the specific encryption endpoint authorizes the client to submit plaintext for encryption using the named key, while the `read` capability on the key’s metadata path is required to verify the key exists and retrieve its public parameters before the operation proceeds. On the HashiCorp Vault Associate VA-003 exam, this question tests your understanding of policy path granularity and the transit engine’s two-tier permission model—a common trap is assuming only the `encrypt` capability is needed, forgetting that Vault enforces a pre-flight existence check. A reliable memory tip is “read the key, encrypt the data”: the key’s metadata path needs read access, and the data path needs the specific action capability.
This VA-003 practice question tests your understanding of explain encryption as a service. Match the stated requirement to the specific cloud service, access model, or configuration option — many options are valid in isolation but not for this scenario. After answering, compare your reasoning against the explanation and wrong-answer breakdown below. Once you have made your selection, read the full explanation to reinforce the concept and understand why each distractor is designed to mislead on exam day.
Which TWO capabilities are required in a Vault policy to allow a client to encrypt data using a key named 'app-key' in the transit engine? (Assume the key already exists.)
read on /transit/keys/app-key
Required to read key metadata.
encrypt on /transit/encrypt/app-key
Required to perform encryption.
update on /transit/keys/app-key
Why wrong: Update is for modifying key config.
create on /transit/keys/app-key
Why wrong: Create is for creating new keys.
list on /transit/keys/app-key
Why wrong: List is for enumerating keys.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
read on /transit/keys/app-key
Option A is correct because the 'read' capability on the policy path `/transit/keys/app-key` is required for the client to retrieve the public key information or verify the key exists before encryption. Option B is correct because the 'encrypt' capability on the path `/transit/encrypt/app-key` is the specific permission needed to submit data to the transit engine's encryption endpoint, which uses the named key to perform the encryption operation.
Key principle: Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Answer analysis
For each option: why learners choose it and why it is or isn't the right answer here.
read on /transit/keys/app-key
Why this is correct
Required to read key metadata.
Related concept
Read the scenario before looking for a memorised answer.
encrypt on /transit/encrypt/app-key
Why this is correct
Required to perform encryption.
Related concept
Read the scenario before looking for a memorised answer.
update on /transit/keys/app-key
Why it's wrong here
Update is for modifying key config.
create on /transit/keys/app-key
Why it's wrong here
Create is for creating new keys.
list on /transit/keys/app-key
Why it's wrong here
List is for enumerating keys.
Common exam traps
HashiCorp often tests the distinction between capabilities on the key configuration path (`/transit/keys/`) versus the operation path (`/transit/encrypt/`), and candidates mistakenly select 'create' or 'update' thinking they are needed for encryption, when only 'encrypt' on the operation path is required.
Detailed technical explanation
Under the hood, Vault's transit engine uses a policy-based ACL system where each operation (encrypt, decrypt, read key metadata) maps to a distinct HTTP endpoint and requires the corresponding capability. For encryption, the client sends a POST request to `/v1/transit/encrypt/app-key` with plaintext data; the 'encrypt' capability on that exact path is enforced by Vault's backend before the encryption operation proceeds. In a real-world scenario, a DevOps pipeline might need only encrypt and read capabilities to securely encrypt secrets without exposing the ability to delete or rotate the key.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A small business has 20 workstations on the 192.168.1.0/24 network and one public IP from its ISP. The router uses PAT (NAT overload) so all 20 devices share one public address using different source ports. NAT questions test whether you understand the four address terms and which direction each translation applies.
What to study next
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FAQ
Explain encryption as a service — This question tests Explain encryption as a service — Read the scenario before looking for a memorised answer..
The correct answer is: read on /transit/keys/app-key — Option A is correct because the 'read' capability on the policy path `/transit/keys/app-key` is required for the client to retrieve the public key information or verify the key exists before encryption. Option B is correct because the 'encrypt' capability on the path `/transit/encrypt/app-key` is the specific permission needed to submit data to the transit engine's encryption endpoint, which uses the named key to perform the encryption operation.
Identify which exam domain this question belongs to, review the core concept, then practise similar questions from the same domain.
Read the scenario before looking for a memorised answer.
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Same concept, more angles
These questions test the same concept from different angles. Work through them to make sure you can recognise it however the exam phrases it.
Variation 1. A DevOps team uses Vault's transit engine to encrypt secrets in CI/CD pipelines. They report that encryption operations are failing with 'permission denied' errors. The team has a policy granting 'create' and 'update' capabilities on the transit key path. What is the most likely missing capability?
hardWhy B: The Vault transit engine uses distinct capabilities for key management versus data operations. 'Create' and 'update' allow managing the key itself (e.g., creating or rotating the key), but encryption of data requires the 'encrypt' capability on the transit key path. Without 'encrypt', the API call to encrypt data fails with a 'permission denied' error, even if the key exists and is properly configured.
Last reviewed: Jun 30, 2026
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