Business and Management

Role Of Encryption In Blockchain

The use of cryptography is commonplace in Blockchain technology. It is used as a means to ensure that transactions are done safely while securing all information. Cryptography is the method of disguising and revealing information using numbers and mathematics.

The data can only be surveyed by the expected receivers and nobody else. Blockchain also helps in tokenized property investment. The process includes taking non-encrypted data and encrypting it by utilizing a precise algorithm.

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The application of encryption in Blockchain essentially has two purposes. Secure the identity of the sender and transactions. It ensures that the records cannot be tampered with.

The type of cryptography used in the blockchain is 'Public-Key Cryptography', also known as Asymmetric Cryptography. Public-Key Cryptography uses separate keys for encryption or decryption (a public key and a private key) rather than using a single key.

In the process, it uses a combination of a user's public key and private key to encrypt the information, whereas it uses the receiver's private key and sender's public key to non-encrypt it. Therefore, a user can send their public key to anyone without worrying that people will gain access to their private key.

This is possible but would need an unfeasible amount of computing capability, which guards the blockchain against manipulation endeavors. Based on the aforementioned information, it can be concluded that the use of encryption in blockchain technology leads to add on security and authenticity in blocks.