What is Cryptography?
Cryptography is the practice of securing information by encoding it in a way that makes it unreadable without the proper key or decryption method. It involves two main processes: encryption and decryption. Encryption is the process of converting plain text into cipher text using an algorithm, while decryption is the process of converting cipher text back into plain text using the same or a different algorithm.
Cryptography works by using mathematical algorithms to encode information in such a way that it can only be decoded with a specific key. This key is used to scramble and unscramble the data, making it difficult for anyone without the key to read or understand it. In addition, cryptography also involves techniques such as hashing, digital signatures, and symmetric and asymmetric encryption, which are all used to protect information on the blockchain network.
Why is Cryptography Important in Blockchain?
Cryptography is an essential component of blockchain technology because it provides security and ensures that data stored on the network remains confidential and tamper-proof. Here are some of the main reasons why cryptography is important in blockchain:
- Decentralization
- Confidentiality
- Integrity
- Authentication
How Cryptography Works in Blockchain
Now that we understand why cryptography is important in blockchain, let’s explore how it actually works on the network.
1. Symmetric Encryption
Symmetric encryption is a type of encryption where the same key is used for both encryption and decryption. This means that the sender and receiver must share the same key in order to communicate securely. In blockchain, symmetric encryption is often used for transmitting data between nodes on the network.
2. Asymmetric Encryption
Asymmetric encryption, also known as public-key cryptography, is a type of encryption where each user has two keys: a public key and a private key. The public key can be shared with anyone, while the private key must be kept secret. This means that anyone can encrypt data with a user’s public key, but only the user will be able to decrypt it using their private key. In blockchain, asymmetric encryption is often used for digital signatures and other authentication purposes.
3. Hashing
Hashing is a cryptographic technique that is used to create a fixed-length string of characters from an input of arbitrary length.
