Blockchain technology with its implications span the worlds of finance, economics, computer science, politics, culture. In addition, blockchain plays a crucial role in making cryptocurrencies possible thanks to its security and recording power. In this article, we will offer everything about cryptography that you need to know. There are several popular sections to be mentioned, including cryptocurrencies’ types, how blockchain and cryptocurrencies work together.
What is blockchain?
Blockchain is a peer-to-peer network; this word is made up of two separate terms, ‘block’ and ‘chain’. A block and a chain being referred respectively to a collection of data and a public database of these blocks stored as a list.
Cryptography are used to link these lists, and it is the most essential and fundamental requirement for creating a blockchain. Blockchain is a growing list of records, and as time passes, new blocks are added to the list.
What Is Cryptography?
Cryptography is a form of internet security. It is known as the process of turning information into code and encryption, so that only the intended recipient can access it.
Using of an algorithm and a key, information in plaintext translates into code or ciphertext. The same key can be used for a variety of plaintext and ciphertext combinations. Hackers should be unable to decipher the original text or the key.
A stream cipher can be used to encrypt information by encrypting each byte of the original text one byte at a time. The length of the ciphertext is the same as the length of the original text. You may also encrypt using a block cipher, which encrypts many blocks of data at once.
Types of Cryptography
There are different ways to encrypt data. Each way has pros and cons, but we totally use them to create a more robust encryption process. Have look at the three primary types of cryptography.
Symmetric cryptography was the first type of encryption used online. Symmetric cryptography translates information into a cipher. But to do this, you need a same key.
This key is used by both the sender and receiver and then, the symmetric cryptography can process large amounts of data very quickly.
However, sharing keys between 2 people are very dangerous, which created a vulnerability that hackers could pretty quickly exploit.
In asymmetric cryptography, the sender and receiver are provided with a different key. One key is for encrypting the information, and the other separate key is for decrypting that encryptied information at the other end.
There is a system of 2 keys per user: a public key and a private key. Only you know your private key, while the public key is shared to everyone. After your public key receive information from someone, you have to enter your private key to unlock and decrypt data that is sent.
And when you want to send message to someone, you would encrypt it with their public key. Then, only they can unlock it using their private key.
A cryptographic hash is a set of text. Any plaintext information can be put through a hashing algorithm and converted into into a unique string of text.
A big difference between cryptographic hashing and symmetric or asymmetric encryption is that you can’t reverse the process where original data goes through the cryptographic hash function.
With hashing, you can reduce a whole lot of data to a small string of text in a hash. Regardless of how long or detailed the data is, hashes are always the same length. As a result, hashing is a method of compressing data.
How are Cryptographic Hashing used in Blockchain Cryptography?
A blockchain is a digital ledger of every transaction that is made in in a specific cryptocurrency or network, and inside it is lots of information. In order to store all that data but at the same time ensure them secure, you need to enter cryptographic hashing.
After verified, a transaction gets put through a hash algorithm, and the hash is added to the blockchain. As new transactions are confirmed, hashed, and added, the new hashes are put through the hash algorithm together, and a new unique hash is added that records both hashes from the original transactions.
Hashes are still being merged into new hashes where the original’s trace is still accessible. The single combined hash is referred to as the “root hash.” This is referred to as a Merkle Tree. Multiple transactions can be combined into a single tiny string of text.
What Does Cryptography Bring to Blockchain?
Cryptography is critical to the blockchain ledger’s security. On the blockchain, each transaction is recorded using encrypted data. Using their public and private keys, any user may safely access their own information and purchase and sell cryptocurrency.
Blockchains record root hashes with each transaction securely inscribed into them using cryptographic hashing. If someone tampers with data from any area of the blockchain, the consequence will be an entirely new hash at the root hash. Other users can discover that the data is compromised by comparing that root hash to the root hash on their own machine.
Cryptographic hashing enables an infinite number of transactions to be safely logged across the network. Because several transactions may be combined into a single hash, blockchains can continue to expand at scale.
Cryptographic hashing is irreversible so that no one can undo transactions. This approach protects them from any antagonistic activity and assures that all users may rely on the digital ledger’s correctness.
This article has offered you information about Cryptography and showed you about how it works together with blockchain. Izamza.com hope that you all gain more knowledge about the cryptocurrency field.