A stream cipher is a symmetric key cipher where plaintext digits are combined with a pseudorandom cipher digit stream (keystream). In a stream cipher, each plaintext digit is encrypted one at a time with the corresponding digit of the keystream, to give a digit of the ciphertext stream. Since encryption of each digit is dependent on the current state of the cipher, it is also known as state cipher. In practice, a digit is typically a bit and the combining operation is an exclusive-or (XOR).

The pseudorandom keystream is typically generated serially from a random seed value using digital shift registers. The seed value serves as the cryptographic key for decrypting the ciphertext stream. Stream ciphers represent a different approach to symmetric encryption from block ciphers. Block ciphers operate on large blocks of digits with a fixed, unvarying transformation. This distinction is not always clear-cut: in some modes of operation, a block cipher primitive is used in such a way that it acts effectively as a stream cipher. Stream ciphers typically execute at a higher speed than block ciphers and have lower hardware complexity. However, stream ciphers can be susceptible to security breaches (see stream cipher attacks); for example, when the same starting state (seed) is used twice.