In physics, its the ability for particles to exist in multiple/parallel dynamic states at a particular point in time. In computing, would it be the ability of a data bit to
Yes, there is quantum encryption, by which if someone tries to spy on your communication, it destroys the datastream such that neither they nor you can read it.
However, the real power of quantum computing lies in that a qubit can have a superposition of 0 and 1. Big deal. However, if you have, say, eight qubits, you can now represent a superposition of all integers from 0 to 255. This lets you do some rather interesting things in polynomial instead of exponential time. Factorization of large numbers (IE, breaking RSA, etc.) is one of them.