Encryption and Decryption Techniques in Cryptocurrency

Before starting off with Encryption and Decryption Techniques, lets refresh our memory of the previous session, where we had a tried making a basic understanding of the transaction processes involved in Cryptocurrency.

Topics to be covered

  1. What is Encryption and Decryption?
  2. How is encryption and decryption applicable in Blockchains?
  3. What is Cryptography?
Encryption and Decryption Techniques
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What are Encryption and Decryption techniques?

 Today, we look at probably one of the most important aspects of the currency, i.e. security. One of the visible differences between crypto and other forms of money is the security part of the currency and is achieved by Encryption and Decryption Techniques.

Encryption and Decryption Techniques happens to be the process where the simple words or letters that are put together to form sensible or meaningful information is being coded to ensure that the message cannot be read by anyone other than the authentic sender and receiver.

Exactly the opposite happens in the case of decryption where a coded message is turned into a readable format. The process is also termed as “Breaking”.

How are encryption and decryption applicable in Blockchains?

Actually, it is not very relevant. Many journalists and management consultants talk about encrypted blockchains, but they are confusing encrypted data, not used in first generation blockchains 66, with cryptography which is used extensively in blockchains for hashing and digital signatures, as we will see later. Nothing on the Bitcoin network is encrypted by default. The whole point is that plain text transaction data is replicated across the network so that anyone can read and validate it.

What is Cryptography?

Cryptography happens to be the process of securing data from those who are not entitled to see or modify them. Encryption and Decryption Techniques in cryptography primarily focuses on ensuring the security of participants, transactions, and safeguards against double-spending. It helps in securing different transactions on the blockchain network. It ensures that only the individuals for whom the transaction data is intended can obtain, read and process the transaction.

Blockchain is developed with a variety of different cryptography concepts. The development of cryptography technology is in a way a further development of blockchain. In the blockchain, cryptography is mainly used to protect user privacy and transaction information and ensure data consistency.

In the next session of Encryption and Decryption Techniques, we deal with the different types of Cryptography, and the varied their varied applications in the Blokchains.


Suggested Topic

The process of Linking the Blocks and storing currency


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