XML Encryption provides end-to-end security for applications that require secure exchange of structured data. XML itself is the most popular technology for structuring data, and therefore XML-based encryption is the natural way to handle complex requirements for security in data interchange applications.
Currently, Transport Layer Security (TLS) is the de facto standard for secure communication over the Internet. TLS is an end-to-end security protocol that follows the famous Secure Socket Layer (SSL). SSL was originally designed by Netscape, and its version 3.0 was later adapted by the Internet Engineering Task Force (IETF) while they were designing TLS. This is a very secure and reliable protocol that provides end-to-end security sessions between two parties. XML Encryption is not intended to replace or supersede SSL/TLS. Rather, it provides a mechanism for security requirements that are not covered by SSL. The following are two important areas not addressed by SSL:
With XML Encryption, each party can maintain secure or insecure states with any of the communicating parties. Both secure and non-secure data can be exchanged in the same document. For example, think of a secure chat application containing a number of chat rooms with several people in each room. XML-encrypted files can be exchanged between chatting partners so that data intended for one room will not be visible to other rooms.