Encryption data (Server Data Formatter Encrypt)

Hi guys…
hoping that everyone had a good 15th of August (here in Italy is holiday) I would like to ask you if some of you is confortable with Server Data Encrypt. I have to start to encrypt a database running the website and sincerely speaking I do not understand well how it works. More if someone can explain also Encode 64 how it works…

Thank you very much… a bottle of good italian wine is prize for best reply