The term encapsulation is often used interchangeably with information hiding. Not all agree on the distinctions between the two though; one may think of information hiding as being the principle and encapsulation being the technique. A software module hides information by encapsulating the information into a module or other construct which presents an interface.
A common use of information hiding is to hide the physical storage layout for data so that if it is changed, the change is restricted to a small subset of the total program. For example, if a three-dimensional point (x,y,z) is represented in a program with three floating point scalar variables and later, the representation is changed to a single array variable of size three, a module designed with information hiding in mind would protect the remainder of the program from such a change.
In object-oriented programming, information hiding (by way of nesting of types) reduces software development risk by shifting the code's dependency on an uncertain implementation (design decision) onto a well-defined interface. Clients of the interface perform operations purely through it so if the implementation changes, the clients do not have to change.
To summarise Information hiding and encapsulation