What best practices should PHP developers follow when creating encryption algorithms for sensitive data in web applications?

When creating encryption algorithms for sensitive data in web applications, PHP developers should follow best practices such as using strong encryption algorithms like AES, securely storing encryption keys, and implementing proper key management practices to ensure the security of the encrypted data.

// Generate a secure encryption key
$encryptionKey = random_bytes(SODIUM_CRYPTO_SECRETBOX_KEYBYTES);

// Encrypt sensitive data using AES encryption
function encryptData($data, $key) {
    $nonce = random_bytes(SODIUM_CRYPTO_SECRETBOX_NONCEBYTES);
    $cipherText = sodium_crypto_secretbox($data, $nonce, $key);
    return base64_encode($nonce . $cipherText);
}

// Decrypt sensitive data using AES decryption
function decryptData($encryptedData, $key) {
    $decodedData = base64_decode($encryptedData);
    $nonce = mb_substr($decodedData, 0, SODIUM_CRYPTO_SECRETBOX_NONCEBYTES, '8bit');
    $cipherText = mb_substr($decodedData, SODIUM_CRYPTO_SECRETBOX_NONCEBYTES, null, '8bit');
    $plainText = sodium_crypto_secretbox_open($cipherText, $nonce, $key);
    return $plainText;
}

// Example usage
$encryptedData = encryptData("Sensitive data", $encryptionKey);
$decryptedData = decryptData($encryptedData, $encryptionKey);
echo $decryptedData;