Encryption

Encryption is the process of converting readable information (plaintext) into an unreadable format (ciphertext) to protect it from unauthorized access. In blockchain, encryption is essential for safeguarding user data, wallet credentials, and transaction details.

How Encryption Works

Encryption uses mathematical algorithms and keys to scramble data. There are two main types: symmetric (same key to encrypt and decrypt) and asymmetric (public key to encrypt, private key to decrypt). Blockchain systems often rely on asymmetric encryption for secure wallet communication and digital signatures.

Role of Encryption in Blockchain

Encryption enables privacy in decentralized networks. It helps users maintain anonymity, protects funds by securing private keys, and ensures only authorized parties can view certain transaction details. Without encryption, blockchains couldn’t offer trustless and secure environments.

Powering Trust and Security

Encryption gives users confidence that their data and assets are safe, even in a trustless network. It’s what makes secure communication, encrypted wallets, and private blockchains possible.