Final answer:
The Vernam cipher is a monoalphabetic substitution algorithm that forms the basis for modern stream cipher.
Step-by-step explanation:
The Vernam cipher is a monoalphabetic substitution algorithm that forms the basis for modern stream cipher. Unlike a periodic substitution algorithm, the Vernam cipher uses a key that is as long as the plaintext to encrypt the message. It combines the plaintext with the key using a bitwise XOR operation to produce the ciphertext.