Chapter 21 of William Stallings' book addresses network security by outlining essential security requirements, types of attacks (passive and active), and encryption methods including symmetric and asymmetric systems. Key topics covered include the Data Encryption Standard (DES), Triple DES, and the Advanced Encryption Standard (AES), along with concepts of message authentication, public key encryption, and SSL/TLS protocols. Additionally, it discusses aspects of key distribution and the IPsec framework for secure communications.