Cryptographic techniques have applications far beyond the obvious uses of encoding and decoding information. For Internet developers who need to know about capabilities, such as digital signatures, that depend on cryptographic techniques, there's no better overview than
Applied Cryptography, the definitive book on the subject. Bruce Schneier covers general classes of cryptographic protocols and then specific techniques, detailing the inner workings of real-world cryptographic algorithms including the Data Encryption Standard and RSA public-key cryptosystems.
Bruce Schneier's Applied Cryptography is an excellent book for anyone interested in cryptology from an amateur level to actually being involved in the development of new encryption mechanisms. Schneier's book begins with a simple discussion of what is cryptography, and then he proceeds through the history of various encryption algorithms and their functioning. The last portion of the book contains C code for several public-domain encryption algorithms.
The book includes source-code listings and extensive advice on the practical aspects of cryptography implementation, such as the importance of generating truly random numbers and of keeping keys secure.