As we know, Blockchain and cryptography go hand in hand. What role does cryptography play in Blockchain Technology? Blockchain makes use of cryptography in several ways like wallet transactions, security, etc. But what do we mean by cryptography? Cryptography is a method of restricting the third party from viewing private data. It was used for several years before Blockchain came into existence as the means of transmitting secret messages in an encoded form that can be decoded by the person whom the message concerns and, nobody else could decrypt the message. There are two types of cryptography: Asymmetric Key Cryptography: This type of cryptography uses a pair of keys for encryption and decryption of information. The public key is distributed worldwide and used for encryption of data. The private key is not to be shared by anyone and used for decryption of the data. It is also called public-key cryptography . Symmetric Key Cryptography: This type of cryptography uses the same ke
Decentralized Ledger The main technology which is behind blockchain is a decentralized ledger which is the technology behind the success of Bitcoin. By decentralized system, we mean that there is no central authority. The system is transparent and not governed by any one party. For example, when money is transferred from one person to another the bank is the central authority which initiates the transfer for which bank charges fees whereas if we make use of bitcoin or any other cryptocurrency no fees are charged from the customer for transfer from one person to another. Moreover, by decentralized ledger, we also mean that the whole system is transparent and any updates which are made in the system are updated to everyone who is part of that system. This transparency reduces hacking of the system because anyone who tries to make changes to any node in the system has to make changes to all the nodes simultaneously which is next to impossible, unlike a centralized system