Mary Amakihi 
Cryptographic Security in Blockchain: Building Trust in Digital Transactions
Cryptography is a means of securing data against unauthorized access. This article will expound on building trust in digital transactions through cryptographic security.
The Caesar encryption was the first encryption used in cryptography. Ciphers were far more straightforward to decipher than modern cryptographic systems, yet they also needed keys and plaintext.
Despite their simplicity, ciphers were the first kind of encryption. Algorithms and cryptosystems are significantly more sophisticated today.
To provide the most secure data transit and storage, they use numerous rounds of ciphers and encrypt the ciphertext of communications.
Other irreversible cryptographic algorithms are in use today that ensure the message’s security indefinitely.
The need for increasingly advanced cryptography methods stems from the desire to protect data more and more securely.
Most of the early ciphers and algorithms used in cryptography have been deciphered, rendering them ineffective for data protection.
Although today’s algorithms can be cracked, it would take years, if not decades, to interpret the meaning of a single message.
As a result, the competition to develop newer, more powerful cryptography techniques continues.
What is Cryptography?
Cryptography is a system that enables safe communication in the presence of evil third parties, referred to as adversaries.
Encryption transforms an input (i.e., plaintext) into an encrypted output (i.e., ciphertext) using an algorithm and a key. A given algorithm will always turn the same plaintext into the same ciphertext if the same key is utilized.
An algorithm is considered secure if an attacker cannot deduce any properties of the plaintext or key from the ciphertext.
Given many plaintext/ciphertext combinations that used the key, an attacker should be unable to conclude anything about the key.
What is Cryptographic Security in Blockchain?
Cryptographic security is the science of safeguarding communications from outside observers. Encryption techniques turn the original message, or plaintext, into ciphertext, which is incomprehensible.
The key enables the user to decrypt the communication, allowing them to read it.
The power of an encryption’s unpredictability is also researched, making it more difficult for anyone to guess the key or input of the algorithm.
We can improve our privacy by using cryptography to create more secure and robust connections.
Cryptographic security advances make it more challenging to break encryptions, ensuring that encrypted files, folders, or network connections are only available to authorized users.
Cryptography security is a technique or process for protecting information from unauthorized third parties during communication.
Cryptography is employed in the blockchain to safeguard transactions between two nodes in the blockchain network. The two essential ideas of blockchain are cryptography and hashing.
Cryptography encrypts messages in the P2P network, whereas hashing aids with the security of block information and linking blocks in the blockchain.
Cryptography security primarily ensures participants’ transactions’ safety and prevents double-spending. It contributes to the security of various transactions in the blockchain network.
It assures that only the individuals for whom the transaction data is intended can receive, read, and process it.
With that said, let us look at the features of Cryptographic security.
Features of Cryptographic Security
Here are some features of cryptographic security;
- The information on a blockchain can only be accessed by the intended recipient and no one else.
- Information cannot be modified between a sender and the intended receiver without the addition of new information being detected.
- The information creator/sender cannot change his mind about sending information later.
- The identities of the sender and receiver are verified. Furthermore, the origin and destination of the information are confirmed.
Given its unique features, cryptographic security can be applied in many ways, which we will look into below.
Applications of Cryptographic Security
Some areas of applications of cryptographic security include;
- Cryptocurrencies
- Password encryption
- Online authentications
- Internet security
- End-to-End Encrypted conversations
Cryptocurrencies
Encryption is used by digital currencies such as Bitcoin to safeguard transactions and prevent fraud.
These transactions are protected by complex algorithms and cryptographic keys, making it nearly impossible to tamper with or counterfeit them.
Password Encryption
Cryptography is most widely employed in computer security, particularly for password creation and storage. When users log in, their password is hashed and compared to a previously saved hash.
The passwords are encrypted using this approach, preventing unauthorized users from reading them even if they get access to the password database.
Online Authentications
Another important application of cryptography is authentication. This could be used to log into a computer, access a bank account, or connect to a secure network.
Authentication protocols employ cryptographic techniques to validate the user’s identity and access credentials to the resource. Cryptography is also used in the storing and verification of electronic signatures.
Internet Security
Cryptography is used to provide web browsing security. It guards against listening in on talks and man-in-the-middle attacks.
The Secure Sockets Layer (SSL) and Transport Layer Security (TLS) protocols encrypt data transmitted between the web server and the client using public key cryptography, resulting in a secure communication channel.
End-to-End Encrypted Conversations
Cryptography also aids in the security of two-way communications like video chats, instant messages, and email. Even with basic encryption, the message is assured to reach only the intended recipients.
On the other hand, end-to-end encryption provides customers with high protection and privacy and is widely used in messaging apps such as WhatsApp and Signal.
Cryptographic security can be applied in many ways and is not restricted to the above mentioned points. The use of cryptographic security in blockchain has helped in building trust in digital transactions worldwide. Let’s see how.
How Cryptographic Security Aids in Building Trust in Digital Transactions
Cryptography is critical to improving the security of blockchain networks. Here are some ways that cryptographic security helps to build trust in digital transactions:
- Confidentiality
- Data integrity
- Secure key management
- Authentication and non-repudiation
Confidentiality
Encryption techniques such as asymmetric encryption might be used to safeguard sensitive information within the blockchain.
Only the intended receiver with the corresponding private key can decode and access data encrypted with the recipient’s public key. This ensures that sensitive data is kept private even when stored on a public blockchain.
Data Integrity
Cryptographic hash functions safeguard the integrity of data recorded in the blockchain by creating unique hashes for each data block.
Any manipulation or alteration of data within the blockchain results in a different hash value, alerting the network to illicit changes.
Secure Key Management
Cryptography offers secure key management procedures that enable participants to generate, store, and distribute cryptographic keys securely.
Vital key management techniques ensure that keys are safe from unauthorized access and may be confidently used for encryption, decryption, and digital signatures.
Authentication and Non-Repudiation
Participants in the blockchain network can use digital signatures to authenticate the legitimacy of transactions and messages.
Participants can establish their identities and assure non-repudiation by digitally signing transactions with their private keys, prohibiting any denial of involvement in the transaction.
Cryptography is critical to improving the security of blockchain networks. Here are some cryptographic components in the blockchain.
Components of Cryptographic Security in Blockchain
Let’s look at some of the most important cryptographic components in the blockchain ecosystem:
- Digital signatures
- Hash functions
- Merkle trees
- Symmetric and asymmetric encryption
Digital Signatures
Digital signatures are cryptographic procedures within a blockchain that provide authenticity and non-repudiation. They employ a combination of public and private key pairs to validate transactions.
The sender’s private key generates a digital signature, which may be confirmed using the associated public key.
This verifies that the message or transaction was sent legitimately and was not tampered with during transmission.
Hash Functions
Blockchain technology relies heavily on hash functions. They take any size input and return a fixed-length string of characters known as the hash.
Hash functions are supposed to be one-way, meaning deriving the original input from the output hash is computationally impossible. This characteristic protects the data integrity on the blockchain.
Merkle Trees
Merkle trees, also known as hash trees, are data structures that quickly verify the integrity and consistency of massive datasets recorded on the blockchain.
They produce hash values for individual data blocks using hash algorithms, which merge to form a hierarchical structure.
Merkle trees improve efficiency and security by allowing rapid verification of personal data blocks without trailing the full blockchain.
Symmetric and Asymmetric Encryption
Encryption is critical for securing sensitive data on the blockchain.
Symmetric encryption uses a single common key for both encryption and decryption, whereas asymmetric encryption employs a pair of mathematically linked keys, namely the public and private keys.
Asymmetric encryption is extensively used in blockchain networks for key distribution, establishing secure pathways, and ensuring confidentiality.
Conclusion
Cryptography is at the heart of blockchain technology, which provides the critical security processes required to build trust and enable secure transactions in the digital era.
Blockchain systems provide many businesses with better security, transparency, and efficiency by employing cryptographic techniques such as public-key cryptography, hash functions, and Merkle trees.
Understanding the symbiotic relationship between cryptography and blockchain becomes increasingly important for businesses and individuals alike as blockchain technology use grows.
