Skip to main content

Cryptography in Blockchain: Types & Applications [2021]

Introduction to blockchain 

Blockchain seems complicated, and it definitely can be, but its core concept is quite simple. A blockchain is a type of database. To be able to understand blockchain helps to first understand what a database is.

A database is a collection of information that is stored electronically on a computer system. Information, or data, in databases is typically structured in table format to allow for easier searching and filtering for specific information. What is the difference between someone using a spreadsheet to store information rather than a database?

Large databases achieve this by housing data on servers that are made of powerful computers. These servers can sometimes be built using hundreds or thousands of computers in order to have the computational power and storage capacity necessary for many users to access the database simultaneously. While a spreadsheet or database may be accessible to any number of people, it is often owned by a business and managed by an appointed individual that has complete control over how it works and the data within it.



Cryptography

Cryptography is a method of developing techniques and protocols to prevent a third party from accessing and gaining knowledge of the data from the private messages during a communication process. Cryptography is also made up of two ancient Greek terms, Kryptos and Graphein, the former term meaning “hidden” and the latter being “to write”. There are several terms related to cryptography, which are stated as follows:

·         Encryption

·         Decryption

·         Cipher

·         Key


Types of Cryptography


To understand cryptography in blockchain, one has to understand the types of cryptography. There are mainly three different ways in which we can perform cryptographic algorithms, namely, symmetric-key cryptography, asymmetric key cryptography, and hash functions.


1. Symmetric- Key Cryptography– In this encryption method, we take a single key into application. This common key is used for both the encryption as well as the decryption process. Using a common single key creates a problem of securely transferring the key between the sender and the receiver. It is also called Secret-Key Cryptography.


2. Asymmetric- Key Cryptography- This encryption method uses a pair of keys, an encryption key, and a decryption key, named public key and private key respectively. The key pair generated by this algorithm consists of a private key and a unique public key that is generated using the same algorithm. It is also called Public-Key Cryptography.


3. Hash Functions- This type of encryption doesn’t make use of keys. It uses a cipher to generate a hash value of a fixed length from the plaintext. It is nearly impossible for the contents of plain text to be recovered from the ciphertext.

 

Applications


Below are numerous blockchain applications bringing efficiency and speed to industries and business functions:

Industry-specific solutions

Financial Services

·         Investment Management

·         Cross-Border Transactions

·         Trade Finance

·         Capital Markets

Public sector

·         Transparent Budgeting

·         Digital Voting

Common solutions

Internet of Things (IoT)

·         Smart Appliances

·         IoT monitoring

Smart Contracts

·         Smart contracts in insurance

·         Supply chain management

·         Financial data recording and management

·         Copyright management

·         Clinical trial tracking

·         Property ownership transfer

Personal Identity Protection

·         Digital IDs (Passports, Personal IDs, Marriage Certificates)

·         Wills and Inheritances

 

Blockchain technology has been in the key focus areas of development for all multinational companies and also a huge number of startups are emerging in this technology for the past few years. Blockchain is yet to witness its mainstream usage in society, yet there are numerous opportunities for professionals to explore and develop their careers in this field; one of which is cryptography in blockchain for sure.

Have More Questions!!             

Email at: - sales@blockchaindevelopments.io

Connect with the expert team: - https://bit.ly/2B32Az7

Comments

Popular posts from this blog

Smart Contract Development Company in Washington

Smart Contracts are now essential to any blockchain-based business. The self-executing digital contract is the key to automate processes, transactions, and agreements, helping to reduce costs, hence security and end the very confusing and not reliable paperwork. Smart contracts are automated digital contracts that enable highly-secure and self-executing agreements to be formulated. They solve many issues faced in traditional contracts such as lengthy paperwork, the need for third-party intervention, and huge costs. Codezeros is the Smart Contract Development Company with the best solutions for your enterprise. Up to date with every new technology and innovation in the blockchain world. Our team of experts is focused on building an outstanding computer-based protocol. Customizable for any type of industry, the digital contract doesn’t need a middleman to ensure that all the parties involved are performing their part. Once all the rules and conditions are settled, its base algor...

Top blockchain App Development Company in Toronto

Nowadays, it’s quite a challenging job to find-out the best company that provides blockchain application development services. There are lots of companies in the market that offers blockchain solutions and are trying to take a first place in this field. Codezeros is a leading Blockchain app development company with high potential for perfection and innovation. To create Blockchain apps that revamps user experience has been our vision since inception.       Codezeros is a Top  blockchain App Development Company in Toronto  that has a highly dedicated team of expert developers who can craft apps perfectly according to your requirements. They provide customized blockchain app development solutions based on the client requirements and also deliver blockchain technology related other services with high quality at an effective cost. We develop next generation of Blockchain Apps for our customers using Ethereum & Hedera Hashgraph and many mor...

Security Token Offering Services(STO) | Codezeros

Stay at the top of growth wave with quality token development. Security tokens are just a more flexible version of regular securities, only more efficient. They are cryptographic tokens that pay interest and dividends or share profits to token holders based on an asset like shares, real estate, or bonds. Some of the major benefits of opting for STO development are as follows: Traded as securities Credibility Low Fees Decentralized assets remain decentralized An enterprise or a startup will sell its digital asset- its cryptocurrency, to its investors and whosoever, supports the project financially. This sale of their cryptocurrency or a fraction of it will happen in a pre-decided currency form of USD, Euros, or a cryptocurrency like bitcoin. This process will be followed by whitepaper creation and a pitch deck. Later on, after Tokenomics of the cryptocurrency and smart contracts, a pre-STO landing page is created. This process comprises of STO solutions that we provide. We...