In today’s contemporary era, cryptocurrency has registered a prominent place for itself. No matter how much criticism it goes through, but ever since the ban has been lifted off by the Supreme Court of India, which was imposed by RBI in April 2018. However, there are countries and different opinions who still doubt this new financial technology. For those who are new to the crypto world are taking an active interest in knowing all the terminologies and developments by following the latest crypto news. It is completely fine to gather knowledge about such terms. But have you ever noticed the term cryptocurrency deeply? If not, then better know it. Cryptocurrency is a word which comes from cryptography and currency. Many people who are using cryptocurrency for trade and other purposes, still don’t have any idea about the role of cryptography in cryptocurrency. So today, we'll let you know about it.
The role of cryptography in cryptocurrency is very prominent. Before knowing any other terminology, every newbie crypto enthusiast needs to understand the concept of cryptography. The term signifies about secretly keeping valuable data or information through a special encrypting method. It is done to keep away from the sight of the third party. Note that cryptography is not a newbie concept in today’s modern technology scenario. This special mechanism was even used for sending messages during ancient times.
After knowing a brief introduction, you need to understand the importance of the need for cryptography in cryptocurrency. Cryptography plays an important role as a shield to protect the data from being stolen or misused by the wrong people. This data can vary from all kinds of fields like science, military, financial, medical, and many more. There are different ample reasons for keeping a particular information secret by many people. The role of cryptocurrency here becomes very important. The revelation of secret information can become a threat to national security if it goes into the wrong hands. As for an example, there are secret passwords or codes for the nuclear launching that are very sensitive to be kept hidden from the evil eye. This ensures the security of the nation. Cryptography allows only those who are reliable for accessing relevant information.
The use of cryptography in data can be applied in different ways. As mentioned above, cryptography had its use in traditional times, when transposition cyphers were applicable in a message for re-arrangement of letters. The message is written haphazardly when bought to this mechanism, the letters got repositioned with a clear representation of letters. This technique was very famous in the historical era. However, in the current scenario, cryptography methods have become too difficult for implementation. If you have been following the latest news on cryptocurrency, then you must have noticed that with the change in time, we see the emergence of new technology and methods. Similar can be observed in terms of cryptography, where now more complex numerical techniques and computer are being preferred for the data encryption. But being complex does not mean it will be far away from the basic principle. This displays the role of cryptography in cryptocurrency.
The use of cryptography in cryptocurrency serves three major objectives which include verifying asset transfer, transaction security, and supervision of additional units’ creation. And to fulfill this purpose, ‘’public key cryptography’’ is the method that cryptocurrencies bank upon. Now to understand what is public-key cryptography, then it is a method where both private and public key is kept by a user. These keys are encrypted and comprise long letters or numbers ranging around 30. Where the public key provides an address to send the money, private key, on the other hand, receives the money which is being sent. For this, it needs to unlock the public key. The public key can only be unlocked by a person who is familiar with the private key.
Cryptography in cryptocurrency is performing better and is going to pave some bigger changes in the structure of public-key cryptography in the coming future. With this development, it will make cryptocurrencies easier access for many people who believe in cryptography. However, it will be too early to speculate about when we are going to see the change. It might take time.
