Everyday Application of Cryptography
We’ve covered the standard, types, and examples of cryptography, but it’s also crucial to understand how the cryptographic algorithms and cryptographic keys are used in everyday life, whether we’re discussing symmetric or asymmetric encryption.
Digital Signatures
When it comes to public key cryptography, digital signature authentication is essential. Authentication refers to any process that verifies specific information.
If you want to verify the identity of a sender or the origin of a document, or when it was signed, cryptography uses a digital signature as a means to check the information.
A single document’s digital signature uses the secret key and the document’s content for authentication.
Because private keys in the context of digital signatures often come from a trusted directory and others may learn them, they can be vulnerable. But this problem can be solved with a certificate with the document issuer’s name and time stamps.
Time Stamping
It may seem a somewhat irrelevant application, but time stamping can be incredibly important in certain situations. A digital time stamp tells us that a certain digital document was created or delivered at a specific time.
The cryptographic system used for time stamping is called a blind signature scheme, which allows senders to transmit a message to a recipient via a third party without revealing any part of the message to them.
In some ways, time stamping is quite similar to sending registered post via the U.S. mail, though it contains an additional verification level. A practical application of time stamping includes copyright archives, contracts, and patent registration.
Electronic Money
Digital money, or electronic cash, is a constantly evolving concept. Essentially, it involves financial transactions done electronically from one party to another.
Cryptography is applied in both debit and credit card transactions and digital wallets. And it is required for anonymous and identified transactions.
Another option is the hybrid approach, which includes anonymous payments with respect to the seller, but not the bank.
Cryptocurrency
It’s essential to understand how cryptography relates to cryptocurrency. Unsurprisingly, the blockchain technology through which digital assets are moved relies on cryptographic mechanisms.
The application of cryptography allows blockchains to maintain security, which is at the core of cryptocurrency systems. In fact, it was the cryptography message board that prompted the creation of Bitcoin in 2009.
Satoshi Nakamoto, the father of Bitcoin, suggested cryptography principles for a double-spend solution that has been an issue with digital currencies from the start.