What is Cryptography Blockchain
Blockchain technology is a collection of related innovations. Its implications have increased in different fields, including economics, finance, computer science, culture, politics, etc.
Blockchain is a revolution in the world of technology which ensures complete security and power. It has introduced many ways to use cryptocurrency. Blockchain is a distributed ledger innovative technology that protects bitcoin, Cardano, Ethereum, Binance Coin, and related cryptocurrencies. But the vital point to note is, they all exist due to cryptography. It is an excellent technology that facilitates blockchain with incredible power. If you are planning to invest, read this before investing in cryptocurrency.
Let’s go into detail about cryptography blockchain and its importance and types.
What is Cryptography?
It is a method that introduces techniques and protocols to protect the data from access by any third party. It means no third party can reach private messages during the communication process. The word “Cryptography” is derived from a combination of two ancient Greek terms, Kryptos and Graphein. Previously, it was recognized as anything ‘hidden’ and later with the meaning ‘to write.
It includes the two most essential terms known as Encryption and Decryption. Encryption means the process of plaintext known as standard text and ciphertext known as a random sequence of bits. Decryption means the process of encryption and alternation of ciphertext to plaintext.
A cipher is a mathematical function present in a cryptographic algorithm that allows the conversion of plaintext to ciphertext. Whereas, key is available in the form of information that persuades the output of the cryptographic algorithm.
Types of Cryptography
It has three types, and you need to understand each type before understanding blockchain clearly. These three types allow us to perform cryptographic algorithms in three different ways. The detail is given below:
1. Symmetric-key Cryptography
This method allows taking a single key into the application. It is suitable for both processes encryption and decryption process. The advantage of a single standard key is the safe transferring of key between the sender and receiver and ensures more security.
2. Asymmetric-Key Cryptography
In contrast to the above method, it uses pair of keys that are encryption and decryption keys. In other words, we can call them public and private keys. The algorithm generates both private and public keys in the same method.
3. Hash Functions
It is a different method that does not use keys and utilizes a cipher to create a hash value. The value contains plaintext of the same length. In addition, it is not possible to recover plaintext from the ciphertext. You can put plaintext information in a hashing algorithm and convert it into distinctive text. But this text does not have any ordinary meaning.
More importantly, once you process the data through a cryptographic hash function, this process is not possible to reverse. In this way, the cryptographic hashing process is different from symmetric and asymmetric encryption.
How is Cryptography Useful for Blockchain?
Here are some benefits of cryptography to the blockchain.
1) Security
One of the most significant benefit that cryptography brings to a blockchain is the security of the blockchain ledger. The blockchain is the platform to record transactions through encrypted data. It allows each user to access information, and users can buy and sell crypto safely. However, this all process takes place through public and private keys.
In addition, cryptographic hashing allows blockchain to record root hashes in transactions safely coded in it. It makes it impossible for anyone to interfere with the data in blockchain because it will lead to a different hash at the root hash.
2) Ascendability
Cryptographic hashing offers limitless transactions and enables it to record safely across the network. The network is robust and allows assimilating more than one transaction into one hash so the blockchain can grow its scale.
3) Reliability
Cryptographic hashing is permanent, and it is impossible to undo any transactions. So, it ensures complete anonymity and safety from any inappropriate action and strengthens the reliability and accuracy of digital ledgers.
Bottom Line
Overall, cryptography plays the role of the groundwork for blockchain technology. It also offers tools to encrypt, make safe crypto transactions, and maintain record transactions with time. As a result, it is easy to make a crypto transaction securely without any centralized authority. Plus, it ensures unlimited addition of the blocks to the chain.
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