## Blog

# What is Cryptography and Why Does it Matter in Blockchain?

- 20 julio, 2022
- Posted by: Instructor
- Category: FinTech

This method tends to be very fast compared to other encryption methods (e.g., using an entire disk partition or database) and is perfect for encrypting large amounts of data. However, compared to symmetric encryption, asymmetric encryption is much slower and can only encrypt smaller data pieces than the key size (usually 2048 bits or less). Therefore, asymmetric cryptography is usually used to encrypt the symmetric encryption keys, which then encrypt much larger blocks of data using symmetric cryptography. It is generally the case that asymmetric cryptography is used to encrypt only the hashes of messages rather than the entire messages in the case of digital signatures. Public-key algorithms are based on the computational difficulty of various problems. Much public-key cryptanalysis concerns designing algorithms in P that can solve these problems, or using other technologies, such as quantum computers.

- In ECDH, two parties individually select private keys and compute their corresponding public keys by performing scalar multiplication on a predefined generator point G of the elliptic curve.
- Much of the data and information transmitted in the process industries can be described by models containing the multiplicative relationship between parameters and variables.
- Similarly, if the same key is used on that ciphertext block, it will always produce the original plaintext.
- Despite potential threats, with carefully selected curve parameters and robust implementation practices, ECC provides an effective solution for securing digital communication, balancing computational efficiency and security.
- Asymmetric encryption introduced much more flexibility in secure communications as the encryption key is not kept secret.
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- This method provides numerous benefits, including secure key distribution, digital signatures, and increased security.

A single compromised key could result in a massive data breach, resulting in reputational damage, punitive regulatory fines, and a loss of investor and customer trust. The origin of cryptography is usually dated from about 2000 B.C., with the Egyptian practice of hieroglyphics. These consisted of complex pictograms, the full meaning of which was only known to an elite few.

## Man-in-the-Middle Attack

Some of the cryptographic algorithms that are more recognizable to the general public are symmetric key algorithms. Several of these, such as DES, 3DES, and AES, are or have been in regular use by the US government and others as standard algorithms for protecting highly sensitive data. Just as the development of digital computers and electronics helped in cryptanalysis, it made possible much more complex ciphers. Furthermore, computers allowed for the encryption of any kind of data representable in any binary format, unlike classical ciphers which only encrypted written language texts; this was new and significant. Computer use has thus supplanted linguistic cryptography, both for cipher design and cryptanalysis.

Otherwise, they could lead to the introduction of vulnerabilities into cryptosystems and expose user data to malicious attackers, or worse, expose encryption keys completely. Notably, the security of ciphers today is often based on mathematical assumptions that have been proven hard to break. Provable security consists in proving that breaking a cryptosystem is as hard as solving a mathematical problem known to be hard.

## Cryptography Techniques: Everything You Need to Know

Asymmetric cryptography’s breakthrough was in large part due to the development of sophisticated mathematical algorithms that could facilitate such a system. These include, but are not limited to, Diffie-Hellman, RSA, and El Gamal, each offering unique encryption and decryption processes. Individuals and organizations use cryptography on a daily basis to protect their privacy and keep their conversations and data confidential.

In the absence of any hardware, a person may make and spend multiple copies of the Bitcoins they have made. Originally, the solution that Nakamoto proposed was based on https://www.xcritical.com/blog/what-is-cryptography-and-how-does-it-work/ a well-known technique known as public-private key cryptography. Cryptocurrencies use cryptographic technology to enable anonymous, secure, and trustless transactions.

## What Cryptography Can’t Do

Once attackers intercept sessions can orchestrate various attacks, including account takeovers, data breaches, denial of service, man-in-the-middle attacks, etc. Organizations that rely on unsalted hashes lack the cryptographic randomness that offers robust protection for sensitive data. Attackers can leverage a community-developed list of commonly used hashes, dictionaries, or brute-force attack techniques to breach encrypted byte arrays on hashes that comprise short strings and common words. Anything that has to do with making or breaking codes falls into cryptology’s domain. In a nutshell, cryptography and cryptanalysis are the two branches under the umbrella of cryptology. A fixed-length value is calculated from the plaintext, which makes it impossible for the contents of the plaintext to be recovered.

An elliptic curve is a set of points that satisfy a specific mathematical equation. In the context of cryptography, we consider elliptic curves over finite fields, which means that there is a limited number of points on the curve. The shape of an elliptic curve and the number of points on it can vary greatly depending on the coefficients in the equation and the finite field’s size.

## Use Authenticated Encryption Instead of Plain Encryption

Security of the key used should alone be sufficient for a good cipher to maintain confidentiality under an attack. A pair of keys that are cryptographically related are used to encrypt and decrypt information. New paradigms and computing systems have emerged in recent years with the advent of automated and distributed communication and technologies. Machine-to-Machine (M2M) communication and the Internet of Things https://www.xcritical.com/ (IoT) are now pervasive technologies and have permeated a number of industries, ranging from agriculture to health, transport, industrial systems, and transportation systems. Applications in IoT and M2M are based on communication between devices such as sensors and actuators used to collect data from the environment for use cases such as smart agriculture, smart health, smart cars, and smart industrial systems.

Nothing is exchanged on the insecure communication channel except the ciphertexts. Cryptography is widely used on the internet to help protect user-data and prevent eavesdropping. To ensure secrecy during transmission, many systems use private key cryptography to protect transmitted information. With public-key systems, one can maintain secrecy without a master key or a large number of keys.[66] But, some algorithms like Bitlocker and Veracrypt are generally not private-public key cryptography. The C++ opensource encryption library OpenSSL provides free and opensource encryption software and tools.