Meaning and Reasons for Cryptography
The term cryptography comes from the ancient Greek words kryptos, which means “secret” or “hidden”, and graphein which means “writing”. Cryptography is necessary when we want to keep information secret and to prevent third parties from reading it.
Intelligent encryption techniques ensure that others have no idea what coded information means if it is not addressed to them.
Cryptography aims to maintain:
- Confidentiality and security.
- Integrity through change protection.
- Authenticity for protection against counterfeiting.
- Liability for non-repudiation.
Security Within the Blockchain
Ciphers use mathematical methods to provide a high level of security. Banks and businesses, including Bitcoin, already employ these techniques to prevent unauthorized persons from accessing e-wallets or manipulating blockchains.
Protection systems are sufficiently complex for cryptographic currency subscribers to sign transactions digitally using private keys. For these systems to work, confidentiality is also important.
For integrity, the receiver of a message should be able to determine if there has been any change in the message or data content after generation. With cryptography, it is possible to identify the sender and receiver of the data.
With this conclusive in-built proof, the author cannot deny that he or she has written a message. Cryptographic methods are, therefore, of great importance in cryptocurrencies.
Behind Bitcoin and other virtual money systems, a complex system protects blockchains as they record all transactions.
Alexander Weipprecht is the managing partner of Provimedia GmbH. As a trained IT specialist for application development, he has been advising leading companies on the following topics for more than 10 years: online marketing, SEO and software. Cryptocurrency is becoming increasingly important to businesses and investors. Through Coin Report and Krypto Magazin Germany, Alexander wants to give all people easy access to the subject matter.