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On today’s blog we are going to talk about the relationship between cryptography and cryptocurrency.

To understand the relationship between cryptocurrency and cryptography we need to understand each one of them:

What is Cryptography?

Cryptography is the science of secure communication, it allows only two peers to send and receive a certain message. The word cryptography comes from a Greek word “kryptos” that means hidden.

Tec target defines cryptography as “secure information and communication techniques derived from mathematical concepts and a set of rule-based calculations called algorithms, to transform messages in ways that are hard to decipher.

These deterministic algorithms are used for cryptographic key generation, digital signing, verification to protect data privacy, web browsing on the internet and confidential communications such as credit card transactions and email.”

Now that we have a somewhat clear idea of cryptography we can get into: 

What is Cryptocurrency?

Cryptocurrency is decentralized digital currency that’s based on blockchain technology and cryptography. We previously discussed the most famous one … Bitcoin, but there are more than 19,000 different cryptocurrencies in the market at times of writing (check the date).

There are a few techniques from cryptography used in cryptocurrency from which we mention “Asymmetric Encryption Cryptography“, which uses two different keyspublic and private—to encrypt and decrypt data.

The private key in cryptocurrency terms are what you use to login to your wallet and cannot be disclosed, however the public key is what you send to your friends or customers to receive payment.

Hashing, also another technique from cryptography it is used to efficiently verify the integrity of data of transactions on the network.

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