A Beginner's Guide to Understanding How Cryptography Safeguards Your Cryptocurrency

Role of Cryptography in Blockchain: Cryptography secures blockchain systems by protecting data, verifying identities, and preventing unauthorized access through encryption, hash functions, and digital signatures, ensuring data integrity and trustless transactions.

Types of Cryptography: The three major branches of cryptography essential for blockchain are encryption (protecting data), hash functions (creating immutable digital fingerprints), and digital signatures (verifying transaction authenticity without exposing private keys).

Encryption Methods: There are two main types of encryption: symmetric encryption, which uses a single key for both encryption and decryption, and asymmetric encryption, which employs a public key for encryption and a private key for decryption, enhancing security.

Digital Signatures in Transactions: Digital signatures verify the authenticity of messages and transactions in cryptocurrency, ensuring that only the wallet owner can authorize transactions while allowing anyone to verify the signature using the corresponding public key.