The main role of the blockchain is to provide a peer-to-peer network without any third-party role. The blockchain is formed with two different words “block” and “chain”, in which block is a collection of data stored, and chain is represented as the connection between two blocks and stored as a list.
Cryptography is used to write a blockchain code and the lists are linked with it.
Well, blockchain cryptography is a tricky thing to understand.
What is Cryptography?
“The Internet is programmable information. The blockchain is programmable scarcity,” said Balaji Srinivasan, a serial entrepreneur, angel investor, and essayist. He is the former chief technology officer of Coinbase and former general partner at Andreessen Horowitz.
Cryptography is a handwritten code that helps in creating techniques and protocols to create a barrier so that no third party can able to assess or gain knowledge of the data from the messages during a communication process. The word Cryptography is created with two different words, Kryptos and Graphein. Krypto means hidden and graphein means to write.
In cryptography, there are different terms such as:
Encryption:
In this plaintext is converted into a ciphertext, which means conversion of a normal text in form of random bits.
Decryption:
Well, it is completely the opposite of Encryption. In this process, the ciphertext is converted into normal or plaintext.
Cipher:
It’s an algorithm that is used to convert normal text into ciphertext.
Key:
Key carries a small amount of information that can induce the output of a cryptographic algorithm.
There are different types of cryptography available in the blockchain. But to create a cryptography algorithm there are only three important ways, symmetric-key cryptography, asymmetric key cryptography, and hash function.
Symmetric-key cryptography:
In this process, only one key is used for the application, and the single is used for both the encryption and also decryption. But there is a problem, when you use a single key then transferring the key from the sender to receiver is not secure. They are also known as secret-key cryptography.
Asymmetric-key cryptography:
It uses two types of keys, one for encryption and the other for decryption. The key that is used for encryption is called the public key and the key for decryption is called a private key.
Hash function:
This encryption does not require any use of keys, instead of a key, it uses a cipher to generate the hash value from a plaintext. Also, it is not possible for the components of plaintext to recover from the ciphertext.
The Findora Block system hosts transactions, assets, and programmable contracts that can be proven compliant, without compromising on privacy. Decentralized finance (DeFi) blockchain project Findora Mining has received an eight-figure funding round.
