Code obfuscation is a form of software protection against unauthorized reverse-engineering.
The chief functions of any software protection technique can be determined as detection of pirate attempts to decipher or tamper software, protection against such attempts and alteration of software to ensure that it functionality degrades in an undetectable manner if the protection fails.
Skater .NET obfuscator performs the deciphering protection by various means that mainly concentrate on making the assembly members names meaningless, encrypting string values, and including tricking code commands that render disassembled code not recompilable.
Skater can make this more difficult by encrypting the strings in your .NET assembly. This is done by inserting a decryption routine into the assembly and calling the decryption code at runtime to return the original Strings.Also you may mark some specific strings to obfuscate. However, for example, an attacker trying to break a licensing routine would first focus attention on Strings having to do with licensing to locate the appropriate spot of code. The string encryption function allows you to select literal values of string data type to be encrypted. You may select all strings to be encrypted. Only specified strings will be encrypted/obfuscated.
Since Strings can provide useful clues for anyone trying to reverse-engineer your code it makes sense to protect your string data from spying eyes. It will not prevent an absolute hacker from deciphering the conversion and seeing your data. You have choice to apply a cryptography method for the string encryption.