Quick Answer
Transparent Data Encryption (TDE) is the correct choice for enabling encryption at rest on Azure SQL Database because it performs real-time I/O encryption and decryption of the data and log files, using AES-256 to protect the physical storage media from unauthorized access. This feature is fully transparent to applications, meaning no schema or query changes are required, which makes it the default and most straightforward solution for data-at-rest protection. On the DP-203 exam, this question tests your understanding of Azure SQL Database security features, often appearing alongside Always Encrypted (for column-level encryption in transit) and dynamic data masking—a common trap is confusing TDE with these other services. Remember that TDE encrypts the entire database at the storage layer, while Always Encrypted protects specific columns from the database administrator. A simple memory tip: TDE stands for “Total Database Encryption” at rest, keeping your data safe while it sleeps.
This DP-203 practice question tests your understanding of design and implement data security. This is a configuration task: choose the command set that satisfies every stated requirement. Small differences — like 'secret' vs 'password' or 'transport input ssh' vs 'all' — change whether the answer is correct. 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.
You need to configure encryption for an Azure SQL Database to protect data at rest. Which Azure service or feature should you enable?
Dynamic Data Masking
Why wrong: Dynamic Data Masking hides data from non-privileged users but does not encrypt.
Always Encrypted
Why wrong: Always Encrypted encrypts sensitive data at the column level, not the entire database.
Azure Information Protection
Why wrong: Azure Information Protection is for classifying and protecting documents and emails.
Transparent Data Encryption (TDE)
TDE encrypts the database at rest automatically.
Answer choices
Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.
Correct answer & explanation
Transparent Data Encryption (TDE)
Transparent Data Encryption (TDE) is the correct choice because it performs real-time I/O encryption and decryption of the data and log files at rest, protecting against unauthorized access to the physical storage media. TDE uses an AES-256 encryption algorithm and is fully transparent to the application, requiring no changes to the database schema or queries.
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.
Dynamic Data Masking
Why it's wrong here
Dynamic Data Masking hides data from non-privileged users but does not encrypt.
Always Encrypted
Why it's wrong here
Always Encrypted encrypts sensitive data at the column level, not the entire database.
Azure Information Protection
Why it's wrong here
Azure Information Protection is for classifying and protecting documents and emails.
Transparent Data Encryption (TDE)
Why this is correct
TDE encrypts the database at rest automatically.
Related concept
Read the scenario before looking for a memorised answer.
Common exam traps
The trap here is that candidates often confuse Dynamic Data Masking (DDM) with encryption, thinking it protects data at rest, when in fact it only masks output and does not encrypt the underlying storage.
Detailed technical explanation
TDE uses a database encryption key (DEK) stored in the database boot record, which is protected by a server-level certificate or an asymmetric key stored in Azure Key Vault. During I/O operations, TDE encrypts data as it is written to disk and decrypts it when read into memory, ensuring that backups and transaction log files are also encrypted. A subtle behavior is that TDE does not protect data in memory or in transit, so it is often combined with other security measures like Always Encrypted or TLS for comprehensive protection.
Key takeaway
Answer the scenario, not the keyword: identify the specific constraint before choosing the most familiar-sounding option.
Real-world example
A media company stores terabytes of video archives that are accessed once a year for audit purposes. Moving these objects to a cold storage tier (Azure Archive, S3 Glacier, or Google Nearline) costs a fraction of hot storage. Questions like this test whether you understand storage tiers, access frequency tradeoffs, and retrieval latency requirements.
What to study next
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FAQ
Design and implement data security — This question tests Design and implement data security — Read the scenario before looking for a memorised answer..
The correct answer is: Transparent Data Encryption (TDE) — Transparent Data Encryption (TDE) is the correct choice because it performs real-time I/O encryption and decryption of the data and log files at rest, protecting against unauthorized access to the physical storage media. TDE uses an AES-256 encryption algorithm and is fully transparent to the application, requiring no changes to the database schema or queries.
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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Last reviewed: Jun 11, 2026
This DP-203 practice question is part of Courseiva's free Microsoft certification practice question bank. Courseiva provides original exam-style practice questions with explanations, topic-based practice, mock exams, readiness tracking, and study analytics to help learners prepare for the DP-203 exam.
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