Encryption
Encryption refers to the process of converting data to an unrecognizable or “encrypted” form. A common use of encryption is to protect sensitive information, so that only authorized parties can view it. Blockchain encryption prevents sensitive information from getting into the wrong hands and being misused or forged. Although various blockchains use different cryptography algorithms, the Bitcoin blockchain uses the SHA-256 algorithm, which produces a 32-byte hash that has proven resistant to hacking attempts to date.
In cryptography, encryption is the process of encoding information. This process converts the original representation of the information, known as plaintext, into an alternative form known as ciphertext. Ideally, only authorized parties can decipher a ciphertext back to plaintext and access the original information. Encryption does not itself prevent interference but denies the intelligible content to a would-be interceptor.
For technical reasons, an encryption scheme usually uses a pseudo-random encryption key generated by an algorithm. It is possible to decrypt the message without possessing the key but, for a well-designed encryption scheme, considerable computational resources and skills are required. An authorized recipient can easily decrypt the message with the key provided by the originator to recipients but not to unauthorized users.
Historically, various forms of encryption have been used to aid in cryptography. Early encryption techniques were often used in military messaging. Since then, new techniques have emerged and become commonplace in all areas of modern computing. Modern encryption schemes use the concepts of public-key and symmetric-key. Modern encryption techniques ensure security because modern computers are inefficient at cracking the encryption.
