The exact reason that made bitcoin and Ethereum extremely popular among all of the other cryptocurrencies is because they have decentralised and anonymously secure nature. These are the very characteristics due to which the transactions of each cryptocurrency happen between the two parties only. There is no third-party involved, that is why the transaction happens smoothly.
If you look at the worldly meaning of cryptocurrency then it means that something that is written in secret. And it is the ability through which you can transfer messages that only the sender and receiver can understand. And the techniques that involve cryptographic methods have complete or some anonymity. Same method applies to crypto currency. Cryptography and its purposes are used in the business of cryptocurrency.
To control transactions and remain anonymous within the network and the verification of digital assets until the token transfers from one party to another. It is really important that all of these actions happen with complete discretion and this is what cryptography does in cryptocurrency.
If you explain this simply, cryptography is more like a mathematician’s technique. Through which you can hide important information. There are many techniques that are used by cryptographers to change or convert the data of cryptocurrencies into cryptic and hidden data.
The encryption of data requires a special key. This is the most important part in cryptography. This key can be anything such as a formula of some kind of algorithm. Basically this key unlocks the information.
Only aspect and work of this key is to make the people who are unauthorised stop from reading the important messages regarding transactions or data of cryptocurrency. Only those who have the correct key can access their data. There are many cryptographic techniques that are used but three of them are the most important.
● Advanced in crypto standard
● Elliptical curve cryptography
● RSA
Then there are other methods that the cryptographers use to make keys. Such as.
● Symmetric
● Asymmetric
Both are forms of cryptographic elements. The only reason that we call crypto with its name is because it is using techniques and terms which help the cryptocurrency to remain anonymous.
Basically, it is a Latin word which was derived from a Greek word crypto. And its meaning is secret or hidden. Many centuries have gone by, but this word is still used to describe the things that are cryptic and hidden from the normal eyes of humans.
To conceal and keep the information regarding cryptocurrency hidden cryptographic elements and techniques have been used by the cryptographers for many years now. It ensures that the activities of the participants and their names remain unlocked. No external party can reach it easily.