The two parties encode confidential data in a form that is not directly readable by the other party. [VERB noun]

双方将机密资料加密，这样对方就无法直接读取资料。

We compared the human mind to a computer which actively seeks information to process, encodes it and stores it for future use. [VERB noun]

我们将人脑比作一台计算机，它主动寻找需要处理的信息，对其进行加密，并存储起来以便将来使用。