The distributed simulation system interoperation can be divided into six levels. Interactive data encryption can be completed in each level, lead to six encryption strategies: data field encryption, data package encryption, program module encryption, simulation application encryption, simulation node encryption, and simulation system encryption. There are four basic Encryption/decryption realization modes: serial modes with software or hardware realization, parallel modes based on embedded processor or FPGA/ASIC system. Large and Complex distributed simulation system may employ one or several encryption strategies and realization modes.