Crypto or Cryptography is the study and practice of sending secure, encrypted messages or data between two or more parties.  The sender encrypts the message so that its contents are obscure to a third party, and the recipient decrypts the message to make it readable again.

Crypto allows digital currency transactions to be secured, secure and deposit-free, without the need for a bank or other intermediary.

Digital currencies use encryption for anonymous and secure transactions, meaning that you do not need to know any personal information to make secure transactions with them.  You also do not need a bank, government, any other third party, or credit card company.

Crypto is not just for digital currencies; computers and the networks that connect to them encrypt and decrypt data, from every Google search to every email you send.

Encryption in simple language

Crypto is a way to modify information in a way that only authorized persons can understand. In other words, cryptography modifies readable data to make them unpredictable and incomprehensible.

To do so, we need to use an encrypted key. This key contains a set of mathematical values that only the sender and the recipient understand the significance of the encrypted message.

Although the encrypted information may seem random, it is done predictably and logically. In other words, the person who receives the encrypted information can decipher it with the key used to encrypt it.

However, because malicious and intrusive individuals do not have access to this key, they will not be able to read the information.

Encryption in simple language

The history of encryption

The first use of crypto was in 1900 BC in an Egyptian hieroglyph tomb. The term crypto comes from the Greek words Kryptos and graphein, meaning “secret” and “scripture”.

Julius Caesar founded one of the most famous uses of cryptography in antiquity,  around 40 BC as Caesar Numeral. Encryption uses a set of passwords that tell you how to encrypt text and restore it!

Caesar employed an alternative cryptographic method, in which each letter of the alphabet had to be moved with another letter of the alphabet to a fixed position in alphabetic order. For example, if the alphabet moves 5 feet to the right, this means that the letter A is now F and the letter B is G. This cycle continued until an encrypted text was completed.

Sensitive messages were transmitted with his permission without interception because only his agents knew how to read them.

In the 16th century AD, a cryptologist called Giovan Battista Bellaso devised the Vigenere encryption method (which is falsely attributed to the diplomat Blaise de Vigenere). This method of crypto appears to have been the first key cryptographic system of its time.

How did this method work?

In this method of cryptography, the letters of the alphabet appear in 26 rows. Every line advances a letter to form a grid. The cipher key is then written to it according to the length of the message. Next, the created table was used to encrypt the message.

Under this encryption method, the letters had to be encrypted one by one with the selected key. Finally, the encrypted text is sent to the receiving party at the same time as the password. The acceptor could decipher this message if he had a similar table on the letter table in the source.

With the advent of computing, crypto algorithms have become more sophisticated. But the main purpose of cryptography remained unchanged: to transmit encrypted messages so that only the recipient could read them.

This process is known as encryption, which is used to share information throughout the wide and public world of the Internet. Information can only be decrypted or deciphered with the specified key, in which case the destination acceptor has the key.

It is interesting to note that crypto was used for both government and anti-government purposes in different cultures. Also, throughout the history of message encryption, it has led to the victory and superiority of the military; so the science of cryptography in World War II gave the Germans a great advantage over the Allies. (The story of the enigmatic and its mystery is told in the film) A brief look at the history of cryptography in the world reminds us of the importance of this science.

Ancient Egypt

The beginning of cryptography dates back to 1900 BC According to existing historical documents, an Egyptian person used images that were not common at the time when words were expressed in images, and therefore it can be concluded that the beginning of cryptography began in Egypt. Four hundred years later, tablets were written in Mesopotamia containing cryptographic formulations engraved on the glass of pottery.

500 BC, A Jewish author wrote a book with words written upside down. Atabesh is the name of this method.

Ancient Egypt
Greece in 487 B.C founded and used Skital.

Skeletal cryptography

Cryptography algorithms used different methods according to their invention. The Skital code algorithm is introduced into the group of permutation algorithms (permutation means connecting and moving letters). The deciphering of this algorithm was very easy according to today’s tools, but in its period is a kind of cryptography.

It is a letter algorithm by moving letters based on writing a text on a piece of leather and shiny (rotating) that piece of a stick of wood. The decryption of this algorithm was very easy according to today’s tools, but in his period is a sort of cryptography.

How does cryptography work?

Before the era of modern technology, scrolling cycles were used to reorganize letters in a message. For example, a message referred to as NRGEE SRGAS may have been encrypted, and the original text was GREEN GRASS. That’s a very fundamental example of the cryptographic concept. However, it was very popular in antiquity.

The methods of implementing data encryption have become much more complex. Today, highly sophisticated computers and math, technology can be used to encrypt data in a more sophisticated way than ever before. Some of this technology is currently being used for digital currencies today.

It does not matter how complex cryptography is because it always operates on a basic principle. Encrypt the data and hide its true meaning, so that only a licensed person can decrypt it. There are many ways of encrypting information, the level of complexity of which can vary depending on the degree of data protection required.

How does cryptography work?
But there are generally three cryptographic algorithms in place to encrypt data:
  • Symmetric cryptography

Symmetric cryptography, also known as secret-key cryptography, relies on a single key. This means that the sender and receiver of the information both share the same key, which is used to decrypt the transmitted data.

Although this method is a good source for encryption, the truth is that only one key protects all sensitive information, so when sending it from insecure communication methods, it is very dangerous.

Suppose you place your house key in front of a friend under the carpet in front of the door.  Your friend can easily enter the house using the key; now consider the fact that instead of a stranger’s friend, he can easily enter your house without your permission!

  • Asymmetric cryptography

In the asymmetric cryptography method, also known as the public key, a key pair is used in the cryptographic process.

This method of encryption dramatically increases the level of data security.  In asymmetric cryptography, each key is created for a specific purpose, and the first key can be shared with anyone on any network.  This key contains information on how to encrypt data, and anyone can use it to encrypt messages. But there is also a private key.  This key is not shared with anyone because it contains information on how to decrypt the data.

Both keys are created by an algorithm that uses prime numbers to design two unique keys related to each other.

The keys are linked together based on complex mathematical algorithms and cannot be easily interpreted.  Anyone with a public key can use it to encrypt messages, but only a private key holder can crack the password of a message sent from the source. This method of cryptography is the basis of most digital current transactions.

  • Hash functions
    For this reason, edited data are not approved in the blockchain.

    Hash functions

Hash functions are another method of cryptography that can secure information. But in this method, instead of using keys, an algorithm is used to convert the data into a cluttered text string of fixed length.

Hash algorithms are also different from other encryption methods because they only work one way.  In other words, you can’t get the main input information from the hash. A hash is critical to blockchain management because it can encrypt large volumes of data without compromising the original data.

Having a consistent structure for managing and organizing data not only increases productivity, but also hashes can act as a digital signature for any encrypted data.

Hashes can be used to protect data against any unauthorized or unwanted changes to the network.  Any change made to the input data of a hash creates a new hash that is no longer the same as the previous hash of the original data.

Public key encryption vulnerability

Perhaps the primary vulnerability that public key encryption faces is that people may lose their keys or reveal their private keys to others.

If you lose your private key, you may have no way of recovering your wallet assets, or if you accidentally share your personal key information with someone else, that person may be able to access your account and the entire password.  Steal your wallet currencies.

Digital signature

Data in a digital message, software, or document.  As the name implies, they act like physical signatures and are a unique way to link your identity to data.   A public key based on encryption is considered a way to verify the information.

The digital signature is a code that connects to the data thanks to two cross-authentication keys, the public key, and the private key.  The sender uses a private key to encrypt the signature data, creates the digital signature, and the receiver receives the signer’s public key to decrypt the data.  This code is proof that the message was created by the sender and was not tampered with during transmission, ensuring that the sender could not deny sending the message.

If the recipient is unable to decrypt and read the signed document with the provided public key, it indicates that there was a problem with the document or signature, so the document cannot be verified.

Digital Signatures are another key feature in the security, validity, and integrity of the content of a digital message, software, or document.

Uses of digital signatures

Uses of digital signatures

In this case, a digital signature can be used to confirm the information.  But in addition to your unique digital signature, which, like a physical signature, represents your identity, there are also digital signatures based on the general keys of cryptography.

A digital signature is like a code that is attached to data thanks to cross-authentication keys.  The data sender creates a digital signature using a private key to encrypt the data; on the other hand, the receiver can decrypt the data with a public key.

This system acts as a method of proving the authenticity of the message in which the signed data does not undergo unwanted changes along the way. Another advantage of this method is that the sender can’t claim to have sent a message.

If the recipient cannot decrypt the data received and the message sent by the public key provided is not readable, it indicates that there is a problem with the document being sent or its digital signature, so the message being sent or the document is invalid.

Types of cryptography

Single-key or symmetric-key encryption Algorithms are generated with a fixed one-byte length (known as block encryption) and a secret key. That generates or transmits a message from this key.  Encryption and the receiver use it to decrypt.  One example of symmetric key encryption is the Advanced Encryption Standard (AES). NIST registered the AES in November 2001 to protect sensitive information.

The United States enforced the standard in the private sector. US classification information in 2003 approved AES. AES is a royalty-free feature implemented in software and hardware, replacing the Data Encryption Standard (DES) and DES3. AES uses longer keys (128-bit, 192-bit, 256-bit) to prevent brute force attacks and other attacks.

Public key or asymmetric key encryption: Algorithms use a key pair.  A public key for the creator or sender to encrypt the message, and a private key that the creator is aware of (until the sharing decision is made) to decrypt the information.

Examples of public-key cryptography are:

  •  RSA: which is widely used on the Internet.
  •  Elliptic Curve Digital Signature Algorithm (ECDSA): Used by Bitcoin.
  •  Digital Signature Algorithm (DSA) a: The digital signature standard was adopted as FIPS by NIST.
  •  Diffie-Hellman key exchange: Diffie Hellman key exchange

The hash function returns a specific output of the input value and is used to integrate and maintain data integrity. Hash functions include SHA-1, SHA-2, and SHA-3.

Advantages of cryptographic knowledge

In the world of cryptocurrencies, because there are no regulatory agencies, the existence of cryptographic technologies causes people to gain trust and use cryptocurrencies.

By using cryptography, we can:

1- Make sure your information is confidential.

As an example, David is trying to send a message to Sarah. Anyone on the way to the message may have the content of the message delivered to Sarah regularly. With the help of cryptographic technology, David can encrypt his message and send it to Sarah. Sarah receives David’s text in an encrypted format. But can Sarah unlock the message?

So before sending the message, David needs to teach Sarah how to unlock the encrypted message. David and Sarah need to agree to use the same cryptographic protocol. Henceforth, all of David’s messages will be sent to Sarah secretly.

2- Verify that the sender of the message is sending the message.

In the previous example, suppose Sarah waits to receive a message from David and receives a message. Can Sarah make sure David sent the message?

Sarah can use David’s cryptographic and digital signing knowledge to verify that the sender of the message was David. Of course, it is noteworthy that this is in a situation where David used his digital signature to send the message.

3- Make sure the sender message is not changed on the network.

Consider the circumstances under which David attempts to receive her request from Sarah and sends her bank account number to Sarah in a message. It is possible that somebody sees this message and changes David’s account number and leaves his account in place and delivers it to Sarah.

But if David sends his message using cryptography technology, even if someone sees him along the way, he can’t change his content. Of course, as we said, crypto has different protocols that both the sender and the recipient agree with. The more complex the cryptographic protocol selected, the harder it will be for hackers to decipher it.

4- Prove that the sender sent the message

Now suppose David sends a message to Sarah. Sarah read and followed up on David’s request. Tomorrow, David doesn’t want to send a message to Sarah. Cryptographic technology helps us avoid such a problem.

Why is crypto important?

In the previous section, we explained what cryptography is, in this section, we examine the importance of this method.

Digital currencies are based entirely on cryptographic ideas. Satoshi Nakamoto is the person (or group of people) who invented bitcoin.  Nakamoto came up with the idea in the form of a white paper in 2009.

Nakamoto solved one of the most difficult problems called “double spending”. When the amount is returned and the same money is spent again, we call it double-spending.

Since Bitcoin is just a code, what prevents people from creating and spending multiple copies of their money?  Nakamoto’s solution was based on well-known encryption known as the public key and private key encryption.

Bitcoin, Atrium, and many other cryptocurrencies use a technology called the public key and private key encryption.  This allows them to make secure transactions between strangers without a trusted intermediary such as a bank.

The last word

Despite a rich history of crypto, digital currencies and the use of public and private keys are still in their infancy.  The first cryptocurrency (bitcoin) is only about 10 years old.  The unlimited potential of this type of cryptography has just begun.

As the use of digital currencies increases, more and more people are realizing how valuable public key crypto and digital currencies are. The need to securely store, send and receive currency codes on the Internet is one of the reasons for the development of this technology.

Online banking and e-commerce have met this need. Efficient online money transfers make business and banking more efficient

Public key crypto has greatly helped secure the exchange and storage of digital money.  As public key crypto helps improve the use and storage of digital money, the popularity of digital currencies is likely to continue to increase over the next few decades.

What is cryptovirology?

Almost anything that ends with logy means that there is a science and study system in the background. For example, Biology or Psychology or Phycology or … But Cryptovirology is a combination of three words that are Cryptography, Virus, and Logy, respectively. Certainly, so far it has been realized that cryptology is an almost destructive specialty.

Cryptovirology is a field in which malicious cryptographic tools are generated using encryption algorithms and combining them with malicious code that attackers can use to exploit their victims.

The beginning of this science came when malware developers realized that they could use asymmetric encryption keys, or more simply the same as public-key encryption (PKI), to encrypt their malware execution code, as opposed to security analysts in laboratories. Antivirus generators could not parse malware because they did not have a private key to decrypt the code.

In fact, in such malware that is generated in this way, the malware attacker or writer can hide a lot of things because it has a private decryption key, and the security analyst will not be able to properly detect the content of the malware because it does not have a private decryption key.

Give. The public key and the private key used by the attacker can allow the attacker to perform any operation in the form of remote encryption on the victim system without the hassle of identifying the content of its malicious activities.

One of the most common types of malware produced by Cryptovirology is known as ransomware. In this type of malware, the attacker uses his encryption key to encrypt files or information in the victim’s system, and because he alone has the decryption key, he ransoms the victim for providing the key. This is one of the tangible uses of Cryptovirology.

If we remove the word Viro in the middle, we are talking about crypto for data security, but the point is that cryptology aims to produce some kind of malware, and therefore carries the word Viro. Thank you for following Digital Currency Signal till the end of this article.


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