SQL Anywhere Studio Security Guide
  Keeping Your Data Secure
    Encrypting a database
      Controlling strong encryption

The encryption algorithm

When you strongly encrypt a database, you can choose to use either the AES algorithm (the default if an algorithm isn't specified explicitly) or MDSR.

AES has recently been through a period of international evaluation and has now been chosen as the new Advanced Encryption Standard block cipher algorithm. It has many properties that lend itself well to encryption of Adaptive Server Anywhere databases in terms of performance and size.

For more information about database encryption algorithms, see:

• Initialization utility options

• CREATE DATABASE statement