Cryptocurrency is a big subject that has many fine little details that can escape casual readers as the biggest changes happen. In the fine print where you have to follow all the little things that keep making or breaking the price of a certain cryptocurrency. To keep these cryptocurrencies safe, they have invested in a particular protection system called cryptocurrency cryptography and so far. It has proven to be a successful protection system.
Bitcoin and Ethereum are two online currencies that are peer-to-peer and as such install fears within people who want to get themselves in the online trading platforms. The fear comes from the place that since the money. Is completely handled online it is susceptible to theft or hacking. However, in our article we will explain why that is not a possible outcome in the near future.
Digital Signature marks
The first tool to every cryptographical protection system for the online currencies is the digital signature mark that is left behind every transaction. The money can’t just up and vanish into thin air as everyone. That is on the network is connected and every transaction has a digital signature. Think of it as a verification step as when there is no signature there is no transaction being performed.
The signature is unique and nobody else can forge the signature no matter what tools they have. Compare that to the real world where sometimes you have to sign certain things before you can accept them or in the form of paying a bill. And that signature can be easily forged as only professionals could. Tell the difference between a forged signature and the real one. On the online cryptocurrency market, the digital signatures are much safer than the real-life signature.
Now you might be wondering how do these digital signatures work, well they are introduced in a form of keys, and with those keys, you can unlock and use the blockchain.
As cryptography has been used thousands of years in the past. As a form of privacy protection of any given item and especially letters. With the intent of only showing the content of the message to the receiver and nobody else.
So, with all that said the question stands how does one perform a transaction using keys and cryptocurrencies?
For example, subject, A sends their money to subject B, for subject B. To be able to unlock the transaction. And verify who sent him the money he needs the key from the said subject. The amount and the senders and receiver’s private information won’t be available to anyone besides the two-people performing the transaction. But everyone will see on their network that one person lost a certain amount of cryptocurrency while the other gained.
The science behind cryptocurrencies is simple to understand on the surface level, but hard to grasp all the details on how it functions and how it can be broken if at all it can. Let’s just say that for a computer to be able to hack the cryptocurrency cryptography. It would take several quantum computers, which we predict won’t be possible for another 30-50 years.