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Applied Cryptography
By Bruce Schneier

This is the Holy Grail of Cryptography - a book that covers cryptography in a readable and understandable manner. It also contains source code for most of the common algorithms in use today.

This book is recommended as it will provide a solid grounding in cryptography. The knowledge in this book is essential in order to understand how crypto systems actually work. According to Wired, this is the book that the NSA wished was never published.

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