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Data can be encrypted before storing it in Chrome storage using a Chrome extension by using cryptographic algorithms such as AES (Advanced Encryption Standard) or RSA (Rivest–Shamir–Adleman).

To encrypt the data, the extension can use a library like CryptoJS, which provides various functions for encryption and decryption of data. The data can be first converted to a string and then encrypted using a secret key known only to the extension. The encrypted data can then be stored in Chrome storage using the chrome.storage API.

When retrieving the data, the extension can decrypt the stored data using the same secret key and CryptoJS functions. This way, sensitive user data can be securely stored in Chrome storage without being accessible to unauthorized parties.