It encrypts the data on the device you send it with, and it remains encrypted until it arrives to the device of the person you sent it to Think of it like a security envelope. It stops anyone in the middle of the delivery chain from being able to easily see the contents of the message.
In reality, much like a security envelope, if someone really wants to see your message, there are ways for them to do so, but it requires signifigantly more effort than a standard envelope.
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