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Application of Cryptography To Blockchain

Cryptography is essential for blockchain technology, providing security, integrity, and trust through applications like data integrity, digital signatures, consensus mechanisms, encryption for privacy, and wallet security. Hash functions link blocks in a blockchain by creating unique hashes that ensure tamper resistance, while digital signatures authenticate transactions using private and public keys. Overall, these cryptographic techniques underpin the reliability and security of blockchain systems.

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16 views4 pages

Application of Cryptography To Blockchain

Cryptography is essential for blockchain technology, providing security, integrity, and trust through applications like data integrity, digital signatures, consensus mechanisms, encryption for privacy, and wallet security. Hash functions link blocks in a blockchain by creating unique hashes that ensure tamper resistance, while digital signatures authenticate transactions using private and public keys. Overall, these cryptographic techniques underpin the reliability and security of blockchain systems.

Uploaded by

pushpitaa2004
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd

APPLICATION OF CRYPTOGRAPHY TO BLOCKCHAIN:

Cryptography is the backbone of blockchain technology, ensuring security, integrity, and


trust. Its primary applications in blockchain include:
1.Data Integrity and Security:
Cryptographic hash functions secure data by creating unique fingerprints for blocks,
preventing unauthorized modifications.
2.Digital Signatures:
Public-key cryptography enables users to sign transactions digitally, proving ownership
and ensuring authenticity.
3.Consensus Mechanisms:
Cryptography supports mechanisms like Proof of Work (PoW) or Proof of Stake (PoS) to
achieve decentralized consensus securely.
4.Encryption for Privacy:
Advanced techniques like zero-knowledge proofs (ZKP) protect sensitive information
while verifying transactions.
5.Wallet Security:
Cryptographic keys are used to manage digital wallets, safeguarding user funds.
USING HASH FUNCTIONS TO CHAIN BLOCKS:

Using Hash Functions to Chain Blocks is a key concept in blockchain technology. It


ensures the security and integrity of the data stored in the blockchain. Here's how it works:
How Hash Functions Chain Blocks
1.Block Structure:
Each block in a blockchain contains:
•Data (e.g., transactions)
•A timestamp
•A hash of the current block
•The hash of the previous block
2.Creating the Hash:
A cryptographic hash function generates a unique hash (fixed-size string) based on the
block's contents.
Example: SHA-256(Block Data + Timestamp + Previous Hash)
3.Linking Blocks:
The hash of the current block is stored in the next block as its
"Previous Hash".
This creates a chain where each block is securely linked to the one
before it.
4.Tamper Resistance:
If someone tries to alter data in a block, its hash changes.
This breaks the link with the next block because the "Previous Hash"
in the next block no longer matches.
The chain becomes invalid unless all subsequent blocks are
recomputed, which is computationally expensive.
DIGITAL SIGNATURE
A digital signature is a cryptographic technique used to securely sign transactions in a blockchain,
ensuring authenticity, integrity, and non-repudiation. It’s like a digital version of a handwritten
signature but much more secure and verifiable.
How Digital Signatures Work
1. Keys:
1. Private Key: A secret key known only to the signer.
2. Public Key: A shared key that others can use to verify the signature.
2. Signing a Transaction:
1. When a user initiates a transaction (e.g., transferring cryptocurrency), the transaction data is
hashed using a cryptographic hash function.
2. The private key encrypts this hash, creating a unique digital signature.
3. Verifying the Signature:
1. The recipient or network nodes use the sender's public key to decrypt the digital signature.
2. They compare the decrypted hash with the hash of the original transaction data. If they
match, the transaction is valid and untampered.

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