Network security is important for business organizations and educational institutes to protect email communications, data distributions, stock trading, and distance learning from various threats like content theft, manipulation, masquerading, replay attacks, and denial of services. Cryptography provides security services like authentication, confidentiality, integrity, and access control through techniques like encryption, digital signatures, digital envelopes, and digital certificates to embed confidence in online activities like banking, trading, and purchases. Popular applications that use cryptography include PGP, IPsec, and SET, which aim to securely transmit information over the internet.