VA-003 Explain encryption as a service Practice Question
Which TWO statements correctly describe Vault's encryption as a service using the Transit secrets engine?
⚠ Common exam trap
Candidates often mistakenly believe that Vault's Transit encryption always produces unique ciphertext. However, while the default is non-deterministic (random nonce), encryption is not guaranteed to be unique because key derivation or convergent encryption can produce deterministic outputs. Option C is incorrect because it states 'always', which is too absolute.
Answer choices
Why each option matters
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
✓
Data is encrypted and decrypted on the server side without the client having direct access to the encryption key.
The Transit secrets engine in Vault performs encryption and decryption on the server side, meaning the client sends plaintext to Vault and receives ciphertext back without ever having direct access to the underlying encryption key. This is the core of encryption as a service: the key remains securely stored within Vault's barrier, and the client only interacts with the key via API calls, never seeing the key material itself.
Answer analysis
Option-by-option breakdown
For each option: why learners choose it and why it is or isn't the right answer here.
- ✗
Ciphertext is stored within Vault for later retrieval.
Why it's wrong here
Transit does not store ciphertext; it returns the ciphertext to the client and does not persist it.
- ✓
Data is encrypted and decrypted on the server side without the client having direct access to the encryption key.
Why this is correct
Transit encrypts data server-side using a managed key, never exposing the key to clients.
- ✗
Encryption always produces a unique ciphertext even with the same plaintext and key.
Why it's wrong here
By default, Transit uses nonce-based encryption producing unique ciphertext, but convergent encryption can produce deterministic ciphertext.
- ✗
Key rotation is not supported; the key version is fixed.
Why it's wrong here
Vault supports key rotation in Transit, allowing new versions of the key to be used for encryption while old versions can decrypt existing data.
- ✓
The encryption key can be derived per context using key derivation, ensuring unique ciphertext per context.
Why this is correct
Transit supports key derivation where the key is derived per context, providing uniqueness.
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Written by Johnson Ajibi, MSc IT Security
Senior Network & Security Engineer · founder of Courseiva
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