Last Updated on November 29, 2023 by newseditor
Have you ever got a notification that your email has been accessed without your knowledge? Perhaps you have had a belonging taken without permission. The feeling afterwards is gutting and with cryptocurrencies it is magnified. This is because cryptocurrencies are often worth a lot. As a result of that, cryptocurrencies are protected with block chain technology. Some experts have opined that blockchain technology is the highest form of security for digital and virtual assets. The protection offered by blockchain technology is made possible through cryptography. The sections below gives you an in depth insight into the mechanics of cryptography in blockchain.
What is Blockchain Cryptography
Blockchain cryptography is the most important part of blockchain security. This is because it ensures functionality of the technology. Basically, cryptographic technology is at the center of the IAP triad – integrity, authenticity, and privacy for decentralized transactions on the network. Cryptography uses hash functions and creates fixed blocks of transactions. These blocks form a chain that is immutable and cannot be broken. Cryptography can create public keys and private keys and each of them have different roles to verify transactions on the blockchain and the identity of the user. Cryptography also uses Merkle trees to verify blocks and reinforce integrity of the blockchain.
Why Secured Transactions on Blockchain Chain
There are several benefits of having blockchain as a secured transaction through cryptography. Some of the benefits of secured transactions using cryptography include:
- Decentralization of Network
The very term ‘blockchain’ was inspired by the fact that there could be blocks of independent networks which are all linked and function together to ensure transparency and verification. In this light, blockchain technology’s essential characteristic is that it is a set of decentralized networks recorded in such a way that its cryptography makes it pretty difficult to alter data.
Integrity is synonymous to blockchain secured by cryptography. Indeed, transactions recorded are difficult to alter, modify, or delete without agreement with the users on that network or chain. The decentralized quality and cryptographic nature of blockchain means that there is zero chance for tampering. Once a node or block is compromised, it immediately alerts users and remains unverified.
Cryptography – public key cryptography – is a sure and secure means for authentication. Usually, it works such that every participant is given a public key which is known by all users, and a private key which is kept pretty confidential. When a user approves a transaction with his private key, a person with the public key can verify much of the transaction. This way, the transactions are verified for authenticity and the use of fake or double spending is prevented.
The sections above outline the elements of cryptography and the advantages of cryptography in blockchain networks and transactions. Clearly, this technology has revolutionized the world and technology as we now know it to be. If you want to be in the loop and be a direct part of this revolution, then you must understand what it is all about. We hope that this article answers whatever questions you may have about cryptography and blockchain technology.