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What Is Cryptography? Why Is It Important For Blockchain?

Cryptography is the mathematical algorithm that expresses the encryption of information by making it incomprehensible to unwanted people.

Cryptography is the science and practice of sending secure and encrypted data between sender and receiver. In other words, cryptography is the science of hiding information. The sender encrypts the data and hides it from a third party. The receiver decrypts the data and makes it readable.

Cryptography is a mathematical encryption technique used to prevent a third party from reading information or data. People who perform cryptography are called 'cryptographers'. Cryptography uses mathematical theories and calculations to encrypt and decrypt data or to demonstrate the authenticity and certainty of information.

Cryptography technique generally involves encryption or decryption. Encryption is the process used to prevent information, data, or message from being understood. Decryption is the process of making the encrypted content intelligible.

Cryptographic techniques enable the secure transmission of information or messages, but can also be used to prevent data from being understood. Cryptography is used in many fields. Online shopping sites, the IT sector, and digital platforms make use of cryptography.

How Does Cryptography Work?

Encrypting information or data depends on the level of complexity of the information or data and the degree of protection it may require. Therefore, there are many ways to encrypt information or data:

  • Symmetric Encryption
  • Asymmetric Encryption
  • Hash Functions

Symmetric Encryption

Symmetric encryption is also called secret-key encryption.

Symmetric encryption uses a single key. Symmetric encryption involves the joint use of a key by the sender and receiver, which is then used to encrypt the data. The same key is also used to decrypt the data.

Asymmetric Encryption

Asymmetric encryption is also called public-key encryption.

Asymmetric encryption uses a pair of keys. In asymmetric encryption, each key serves a single purpose. The public key, which can be used for transfer operations on any key, has information about how to encrypt data and is used by everyone. The private key has information about how to decrypt the data and is not shared.

Both keys are generated by an algorithm that uses large prime numbers to create two unique, mathematically linked keys. Anyone with access to the public key can encrypt data, but only those with the private key can decrypt it.

Hash Functions

Hash functions are different from other ways of encryption. This is because the hash cannot be returned to the original data.

Hash functions are the process of creating a unique value of fixed length from data of different lengths using mathematical algorithms. Hash functions use algorithms instead of keys. Hashes encrypt the data without changing or losing it. Hash functions are used for tasks such as checking the integrity of information or data and verifying information or data. The input value of a hash function is difficult to predict from its output.

Cryptography in Cryptocurrencies

In cryptocurrencies, cryptography methods use mathematical codes that ensure that data is transmitted in a way that only the people for whom the data is intended can read and process it. Cryptography is crucial for blockchain technology. Blockchain networks are decentralized and transparent, where transactions can be carried out securely, and they use cryptographic methods to do so.

Cryptography in cryptocurrencies is used for purposes such as securing transactions performed on the network, controlling the creation of new assets, and verifying the transfer of cryptocurrencies.

In Which Fields Is Cryptography Used?

Cryptography is actively used in many fields in our daily lives. Some of these fields are as follows:

  • Digital platforms
  • Informatics sector
  • Software
  • Safety equipment
  • Official correspondence

 

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