Blockchain Technology is solely responsible for the successful launch of cryptocurrencies like Bitcoins. In 2008, when the world became aware of cryptocurrencies and how they work, it was almost unfathomable to people. Blockchain Technology and encryption are more in the conversation now, than it was a decade before. It is entirely because of Blockchain and its components that so many people are mustering courage and investing their lifelong savings in buying cryptocurrencies, mostly Bitcoins. Applications have made it easier for investors to arrive at the right places in time visit homepage.
Role of Cryptography in Blockchain
In cryptography, information is stored in encrypted forms. That is to say, all the information is stored in the form of codes, which convey no information to ordinary eyes. The plaintexts are coded in such a way that they look like secret messages. Only the authorized users will be able to understand what the coded encryption means.
To read the information, the authorized users convert the codes into normal texts using a key. It is the key that gives them the authority to decrypt the codes. The key is only available to an authorized user, who then has the authority to read or decrypt the code.
Cryptography makes use of two keys in the process: the public key and the private key. The public key is akin to the email address of a user, which can be widely shared so that they can receive information. However, it is only using their unique private key that they will be able to access the information. A sender sends the information using the public key, and the recipient uses the private key to access the information. The private key thus acts as the password to the email address.
Advantages of Cryptography in Blockchain
Here are a few reasons why Cryptography is such an integral part of Blockchain.
- It is due to cryptography that the users’ identities remain concealed. For Bitcoin investors, this is a boon of cryptography. Since Bitcoin is a decentralized currency, it does not fall under the purview of the government, the users like their identity hidden.
- The public key cryptography in Blockchain enables anybody to share information with anyone using the public key. It is only the user with the desired private key that would be able to read the information. private keys cannot be known based on the public key. There is no risk in sharing the public key with someone. Both the sender’s and recipient’s public keys lead to the information being encrypted. The recipient’s private key enables the decryption of the message.
- Blockchain technology also makes use of digital signatures. This further enhances the security of Blockchain. Digital signatures authenticate the transfer of information from an individual to the intended individual. Since the identity of everyone involved remains concealed, a digital signature indicates that the right person has received the information. They also ensure that the information remains unalterable. The digital signatures secure the block in which the data remains encrypted.
- The digital signature is responsible for making it so difficult for hackers to alter any information that has already been fed into the system. Any tampering with the information leads to a complete change in the codes. Any unwarranted activity would alert the two parties involved of a possible hacking into the system.
- A hacker cannot duplicate anybody’s digital signature. Thus the information remains secure. The sender’s identity remains protected. Even if the hacker gets knowledge of the sender, the duplication of the digital signature will never be an option. Thus, the prospect of identity theft gets eliminated in Blockchain Technology.
Even though Blockchain is said to have pioneered in the field of Bitcoin and other cryptocurrencies, it has spread its utility in various fields. This is an uphill journey.