For some people, it can be confusing to tell the difference between cryptography and blockchain technology. Both are different technological innovations but are similar in their operational functionality.
In the past, the ancient Egyptian way of conveying confidential information was the use of the “Caesar cipher” at that time in the Roman empire. This means of communication thus gave birth to cryptography.
Cryptography is derived from the word “Crypt” meaning “hidden” and “Graphy” meaning “writing”. This, however, implies communication between adversaries. Also, it is the way to secure the information through the use of codes.
The cryptographic algorithm used in the world of cryptocurrency and blockchain to secure end-to-end encrypted messages is applied using keyed cryptography which is used to secure transactions between two parties and is classified in two ;
- Symmetric Cryptography in Blockchain
It is the first key cryptography in the blockchain network. It requires the use of a unique key by both parties to encrypt and decrypt messages. Also known as a one-key algorithm that the sender uses to encode and the receiver uses to decode the data.
This method is considered the easiest and fastest way to transmit information. Although the disadvantage of this method is that it requires a lot of keys to interact with other people or nodes, which makes it vulnerable to attackers. A common example of symmetric keys in the system is the Data Encryption System (DES).
- Asymmetric Cryptography in Blockchain
Asymmetric cryptography, also called public key, uses pairs of algorithmic keys. A private key belongs only to the sender of the encrypted message and a public key belongs to both the sender and the receiver to validate that the transaction originated from that particular node.
Note that sender and receiver have their private key for encrypting and decrypting messages respectively. An example of asymmetric cryptography is the Elliptic Curve Digital Signature Algorithm (ECDSA) used by Bitcoin.
In recent times, however, the application of cryptography is more advanced in different areas of our daily lives, including cybersecurity, healthcare, voting, military operations, finance, and business purposes. Encrypted data is coded to process information without centralized government control. This makes it secure in the cryptocurrency system where software like bitcoin is secured through the use of Blockchain technology.
A blockchain wallet is virtual software like Bitcoin and Ethereum used to store transactions or private and public keys. The wallet is only a means of transaction, but data and digital currency are stored in the blockchain. Subsequently, the digital signature guarantees the authentication of each transaction made from a channel. It is like an emblem used to validate a node sending information.
Blockchain is simply a collection of logs in a chain sequence. These journals are general ledger forms that record transactions from inception to the current status of transactions. These blockchains are connected with hash values and timestamps with the encrypted data in the blocks.
For example, simplify with the contemporary use of checkbooks called ledger. For a transaction to be completed, the serial number of the check book and a timestamp indicating the time of the transaction, as well as the imputed data of the owner of the transaction and the issuer, are required. This constitutes the blockchain using cryptographic technology to secure this software.
Decentralize the network
This is the most unique feature in the history of blockchain technology where no third party controls the system. Information is transmitted privately with encryption that only the sender and receiver can decipher. This means that no central authority can interfere with these operations. A common example of centralized authority is the government and the central bank in the financial sector.
Before a transaction is made, it must go through the governing body for approval, whereas for a decentralized system such as blockchain, transactions are owned and governed by you and controlled by you.
The blockchain is widely distributed across a wide range of computer networks, each user or organization has their copy and makes changes to it. This change is however motivated by the validation of other networks of CPUs connected to the system. This shared communication allows him to easily spot an attacker or a malicious act.
The ledger distributed through the nodes is connected to this blockchain to facilitate the recording and sharing of synchronized transactions.
The blockchain is a distributed ledger, it is difficult to alter the data or change the information present in the blocks. This present data cannot be deleted or undone, which makes it immutably secure. Unlike the traditional database run by a centralized authority, databases are updated or changed for specific reasons.
This provides a kind of simplified integrity and auditing in the cryptocurrency world. The ability to produce a complete transaction history without tampering and validating block data through its corresponding hashes.
- Secure network
Due to the cryptographic technology involved in blockchain innovation, it is supposed to offer a higher rate of a secure network. By trusting the cryptographic algorithm between these peer-to-peer networks, only the two people involved can decrypt the encrypted data.
In the mining area where new blocks need to be added as proof of work done in the blockchain. Blocks are usually validated using this hash code to compare them to the previous blockchain. The chain with the longest length, however, is added to the newly created block, from where mining is performed and secured.
At this point, it is difficult for attackers to manipulate the system due to the cost and hardware required to perform these operations. The proof-of-work system is therefore secure.
- peer-to-peer network
The decentralized nature of the blockchain allows two parties to easily communicate at any time without interference from a third party. Blockchain transactions happen between sender and receiver.
The transparency of the P2P system through blockchain technology allows organizations and businesses to thrive without a centralized authority interfering in their operations, making it a secure system.
Cryptography and blockchain technology are inherently useful in today’s digital world to secure information or data. It is safe to say that the future depends on cryptography and its application to our daily lifestyles such as healthcare, military operations, businesses, finance, digital currency, and social media. It gradually prevails over harmful goals by hampering malicious operations.
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