Home / Discover / Business / Here are important points to know about cryptography and Bitcoin

Here are important points to know about cryptography and Bitcoin

Blockchain and cryptography are often talked in the same line length. If we talk about 2009, Bitcoin was first introduced by Satoshi Nakamoto. The market continued to flourish, but the hit of inflation in 2007 and 2008 made the companies and financial experts think about an alternative way could keep the market growing.

In 2009, an unknown, mysterious personality, Satoshi Nakamoto introduced the concept of decentralized financial transactions with the introduction of the cryptocurrency Bitcoin. Why there continued to be a debate on its longevity and sustainability in the longer run, but this decentralized transaction paved its way to success.

All the information in the notes is stored in the form of blocks which are timestamps and encrypted cryptographically. This trip to graphic arrangement adds to the security feature of Blockchain. Thus making it a highly suitable technology. Some of the common features of Blockchain which transpires to Bitcoin are;

Immutability
Decentralization
Data security
Faster transactions

This data security feature of a blockchain is a result of cryptography, a high-level technology that empowers the Blockchain to ensure that every transaction and every piece of information on the Ledger is secured. Owing to these features, Bitcoin is also gaining major acceptance across the different industries.

Understanding Cryptography

It is a type of Internet security that converts information into code via encryption. This encryption prevents the hacker bridge into the system and stealing the data. This also ensures that only the user who intends to access this information and is authorized to do so can access it.

Functioning of Cryptography:

in the simplest of manner, cryptography converts the plaintext into code or in the form of ciphertext combinations. The ciphertext is of the same length as that of the original text. This prevents the hacker from discovering the original text or the key. To convert this plaintext into code, a stream cipher is used. This allows encryption of one byte. You can also use a block cipher to encrypt the entire set of blocks in one go.

Types of Cryptography- All You Need To Know About

Symmetric Cryptography- This one is used online and converts information into cipher. To decrypt this information, you would need a key. The key remains the same here. The sender and receiver don’t need different keys to access the account. Also, this cryptography ensures faster transaction in lesser time, so you can handle bulk requirement.

Asymmetric Cryptography- In case of an asymmetric cryptography, both the sender and receiver require two differnt keys to encrypt the data while the other key is used to decrypt. It makes use of 2 keys per user: the public key and the private key; the public key remains unique, and everyone can see it, but nobody knows the private key. It is like the password for your banking account, which only the user would know. The public and private keys work together to encrypt and decrypt the data.

Cryptographic Hash– A hash is a text set generated via an algorithm. It’s a unique combination of alphabets and numbers. Remember, when hashing is initiated, and it’s done, you cannot reverse this process.

Final Words

So, these were some vital pieces of information regarding cryptography and how it ensures security on the distributed ledger platform. Over the years, there has been a growing use of the Blockchain; from food to finance, every company is trying to hop on the use of cryptocurrencies. And hence there has been a growing inclination to invest in cryptocurrency. If you wish to establish yourself as a crypto trader, you can register yourself on a crypto trading platform like the https://bitqt.biz/

Other articles from mtltimes.ca – totimes.ca – otttimes.ca