Wire encryption for data in transit in Hadoop means data is encrypted before it travels over the network and decrypted only after it reaches the server. This protects data from being read by others while moving between client and server. To enable this, you set the configuration property dfs.encrypt.data.transfer to true before writing or reading data. When this is set, Hadoop encrypts data on the client side before sending it and decrypts it on the server side after receiving. The execution steps show creating the configuration, enabling encryption, writing data which gets encrypted, sending encrypted data over the network, and finally decrypting it on the server. This simple setting helps keep data safe during transfer without changing how you write or read files.