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How Cryptography works for Cryptocurrencies

Cryptography is the technique of data hiding. It hides the data with encryption method. Encryption method replace the original message with encrypted message of fixed length. That is not easy to accessible for anybody. Cryptocurrency used the cryptography technology. It helps to make it more secure. Basically cryptocurrency is a digital currency.

 

Types of cryptocurrencies are bitcoin, ripple, Ethereum, and Litecoin etc. These all cryptocurrencies use the blockchain technology. Blockchain provide the platform for these digital currencies. Which helps to make its transaction secure. Cryptography, cryptocurrency and blockchain these are interrelated. Now we will take a small discussion about this.

 

Cryptography is a method of encryption or data hiding. It is used in blockchain technology. Blockchain technology provide the platform for cryptocurrency to make efficient its transaction. Blockchain also use a peer-to-peer network. It will provide the decentralized environment to its transaction process. Cryptocurrency or we can say digital currency which work on blockchain. It use the cryptography techniques to verify and control the cryptocurrency flow.

 

How Cryptography works for Cryptocurrencies

Now we will discuss how cryptography works for cryptocurrency. Cryptography is a process of encryption method. It uses some encryption methods like symmetric, asymmetric, hashing and digital signature.

 

Symmetric cryptography is a simplest method of cryptography. In this cryptography consist two vendor sender and receiver. Both has a same secret key. The key may be a random number. Sender send the message with his secret key. Which it make encrypt. When it reached at receiver side, apply the same secret key on it. This will convert it to original message.

 

Asymmetric cryptography is a different from symmetric cryptography. In this method different secret key is used. These secret key is known as public and private key. In this method private key is used for encryption and public key is used for decryption. When sender encrypt his message with private key and send it to receiver side. Sender will share that public key with receiver. Which can convert it to decryption. So that receiver will receive the original message form sender side.

 

Cryptography work for cryptocurrency with hashing algorithm and digital signature technique. These both technology are used to encrypt our data. This is a better way as comparison to symmetric and asymmetric cryptography. Because in these techniques the secret key is every time changed. So this will make it much secure.