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Always Encrypted is a feature of Microsoft SQL Server 2016 and Azure SQL Database, designed to protect sensitive data. It allows client applications to encrypt sensitive data without revealing the encryption keys to the database engine, so the data cannot be accessed either in flight, in server memory, or at rest.

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First: Before creating a database scoped credential, the database must have a master key to protect the credential. For more information, see CREATE MASTER KEY (Transact-SQL). CREATE DATABAS …
answered Mar 28 by David Browne - Microsoft
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In AlwaysEncrypted, the keys are not stored on the server to begin with.
answered Dec 12 '18 by David Browne - Microsoft
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SQL Server has had column encryption with server-managed keys since SQL 2005. See Encrypt a Column of Data. AlwaysEncrypted uses client-side keys.
answered May 5 '18 by David Browne - Microsoft