Encryption

Encryption is fundamental to blockchain and cryptocurrency security. It uses cryptographic algorithms to protect data from unauthorised access. Symmetric encryption involves a single key for both encryption and decryption, commonly used for fast data transmission. Asymmetric encryption, using public and private keys, is vital in blockchain for verifying transactions and securing wallets. When a user signs a transaction with their private key, the network verifies it using the corresponding public key. This ensures authenticity and integrity. Encryption also secures communication in decentralised apps, messaging services, and exchanges. Loss or compromise of encryption keys can lead to irrecoverable asset loss, which is why key management solutions, password managers, and hardware wallets are recommended. Encryption enables trustless transactions, where users don't need to rely on intermediaries to ensure security.