We all know that cryptocurrencies are based on the most innovative technology, blockchain. Blockchain emerged as one of the most innovative techniques to secure data and store tons of data. It has provided a medium to secure decentralized information data.
Encryption technology is a core part of the blockchain. But do you understand what makes blockchain so secure for people? Blockchain relies on the concept of cryptography and hashing to record information securely.
- Cryptography is the core component of the blockchain system that makes it secure.
- The word is taken from the Greek words Kryptos and Graphein, which means hidden and write.
- Encryption is a method of protecting data using codes.
What is cryptography?
Cryptography can be understood as the core component of the blockchain system that makes it both powerful and popular.
Cryptography is a method of securing data from unauthorized access. For example, it is a technique that protects cryptocurrency from unauthorized access and nearly prevents counterfeiting or double-spending. As a result, secure transactions are facilitated between two blockchain network nodes.
The term cryptography is taken from the Greek word Kryptos and Graphein, which means “hidden “and “write ”’. Several definitions are used to define cryptography.
Cryptography is the method to protect information on the blockchain network, making it impossible to change or be stolen.
There are a few terms that you need to understand before you learn what cryptography is. So let’s understand what it is and how it works.
It is a method to protect data using secret codes that hide the text’s real meaning; these codes are in a computer language called cipher texts.
Decryption is the reverse of encryption, the process of converting the cipher texts into plaintext.
History of Cryptography
Before we learn more about cryptography, let’s go back to its history of it. The tale of cryptography is tracked in ancient times during the Roman empire. For example, one of the earliest known signs of cryptocurrencies can be traced back to Egyptian times when the Romans used a popular cryptographic technique, Caesar Cipher, to exchange information.
Then in the 16th century, the trace of the first encryption method Vigenere cipher. In this encryption method, the message is coded into a single text. Then, the opposite party receives the message and decrypts the message using the key known as the Vigenere cipher”.
Later in the 20th century also came the age of rotor-driven encryption machines like enigma used by the germans during the second world war. These machines have generated cipher text using several complex settings. For a specific time, this method was successful and popular among exchanges. But later, the British army found the hack of this method and was able to decode the message using the Enigma code.
After came the computer age when the most powerful encryption technique prevalence rose. During that time, the use of cryptography increased more than in the war business and commerce sector.
Cryptography in the blockchain( working method) :-
With the security and recording power, cryptocurrencies have become more popular. However, cryptocurrency security can be hard to understand for many people. The security of cryptocurrencies can only be explained with cryptography. It is mainly based on two components: cryptography and hashing.
Within the blockchain, cryptography is part of security protocols, making the decentralized ledger system safer. In cryptography, information is broken in the form of codes – encryption, so only the intended user can read that information. In addition, encrypting information protects it from hackers and double-spending.
Information in plain text is converted into codes using an algorithm or a key. In addition, the same key can be used for multiple texts and cipher texts. Therefore, hackers should not be able to discover the key you use to convert the text.
Information can be encrypted using a steam cipher, where only a single byte is encrypted within a single text.
Types of cryptography-
This is a single key-based cryptographic method. It was the first type of cryptographic method used online. The method uses a single key both for encrypting and decrypting. However, using a common key also creates problems securely distributing the keys between a buyer and seller.
Also, sometimes creates problems in the temporal distribution of the key between a sender and receiver. DES (Data encryption system) is one of the popular data encryption systems. Moreover, this popular method uses cipher text to encrypt the data in the blockchain. In contrast, a person who is authorized and trusted can decrypt the data from the network.
- The same key is used for both encryption and decryption
- Energy-efficient and faster
- Used to store bulk information.
In this type of cryptographic encryption, two kinds of keys are used for different modes. Besides, Private and public keys are both used for this type of encryption method. In the case of unknown sources, the public key is used to verify and record the details, whereas the private key helps to decrypt the messages and verify the digital transactions.
However, the difference between private and public keys is that the private key can be derived from the public key, but the public key can not be derived from the private key. ECC and DSS are examples of differences in their terms.
- Asymmetric key encryption, basically known as public key cryptography
- Private and public are two different types of keys sued in this type of cryptographic method
- It’s a time-consuming Process.
It is an essential type of cryptography method. Hash is a text created with a unique structure that is hard to understand. Hashing enables unbreachable security measures so data can not be copied and unaltered. It’s done without any keys.
The Process depends on the hash algorithm, which adds a hash to the block as the transaction verification is done. This way, a new hash from the original transaction is added to the chain. In addition, the process continues making unique hashes, but the footprint is secured and accessible.
The hash function helps to keep liking new blocks and secure the data inside so that any alteration and tampering can not be done. Moreover, any alteration in the block can be a reason for the break of the blockchain. Cryptographic hash functions are used to protect the data in the blockchain.
Understanding the real meaning of cryptography can be simple if you have understood hash functions.
Benefits of cryptography in the blockchain network
There are multiple benefits of cryptography which are described below:-
It is used to guard the information and protect the data in the blockchain.
Cryptography makes the record of information recorded in the block, which makes it impossible to copy the data from the network.
With cryptography, the transaction record is made easier using encryption.
Moreover, cryptographic data tampering with hashing is impossible since the hackers need to break the entire network.
Cryptography is a critical component of blockchain technology. It should be clear after reading this blog. Blockchain technology is based on cryptography.
Furthermore, It gives the ability to cryptocurrency safe and securely record transactions.
We hope this guide will be helpful for you to understand the importance of cryptography in the blockchain network.
What is cryptography, and why is it essential in blockchain?
Cryptography is a method of protecting data from unauthorized access. This technique is popular in blockchain to protect the nodes of a computer network.
Do I need to learn cryptography for blockchain?
Cryptography is a method of securing data in the form of codes. Developers mainly learn this technique to protect blockchain data.
What is a public key?
A public key is the core component of asymmetric cryptography used to decrypt data. It is only accessible to the owner of the information.
What is end-to-end encryption?
End-to-end is a security method that secures the data between sender and receiver. This way, the information is transmitted securely and only provided to the intended recipient.
What is a hash function?
A Hash function is a mathematical function used in cryptography to convert length data into fixed-sized hash values.
What is the main cryptography?
Asymmetric and symmetric are the two main types of cryptography.