How data is encrypted via cryptographic algorithms?
⛓Due to encryption algorithms, blockchain is considered to be the most secure type of peer-to-peer networks (A network in which all users are equal).
🧐To begin with, let’s figure out why something should be encrypted on the blockchain.
In traditional and understandable “client-server” systems, the company’s server is responsible for security, which ensures the security of storing funds (the bank’s server)
The server performs the following functions:
▪️Provides user with access to the data.
It is the server that stores the usernames and passwords of its clients, checks the user before giving him access to the network.
▪️Monitors the safety of the data.
The server takes care of the privacy of users ‘ data and does not give attackers access to personal data and information.
▪️Controls data changes.
Any change is negotiated with the server before it takes effect. In this way, data integrity is maintained.
🤝Since each node on the blockchain is both a server and a client at the same time, and there is no central server, cryptography is used for the above purposes.
🔗Cryptographic encryption algorithms perform the above functions without outside interference, and we now do not need a bank server for secure storage of funds. Cryptography also answers the question of which encryption algorithm to use for a particular purpose.
🔏Algorithm with hash functions
The developers of the blockchain needed an algorithm that easily encrypts information without the possibility of decryption and that turns information of any size into a cipher of a certain length.
These algorithms convert messages into a set of characters (hashes) that can be conveniently and safely used in programming.
🔡Such a set of characters (Hash) can consist of both letters and numbers. What numbers and letters will be in the hash, as well as how many of them will be, depends on the selected hash function.
The most well-known hash function that is used in DecimalChain and Bitcoin is SHA-256. We will talk more about it in the next post #explainblockchain