If the word “cryptography” here is what throws anyone off, it’s not some advanced field of study, it just refers to the physical manifestation of messaging, which a child can get behind.
No it doesn't. Cryptography is specifically encoding messages in a way that is hard for someone without the specific secret key to decode, even if they know the methodology.
From the perspective of the employee it basically is a gift (more a benefit).
Employees don't pay for stock in an ESOP; they're earned by being employed there (with different options for how they're divided, but restrictions so they aren't excessively dominated by the highest earners).