Cryptography in blockchain

Although we have mentioned that cryptography is crucial to the success of blockchain technology, we haven't explored any topic in particular. Most cryptographic primitives have some role or other in the creation of a decentralized blockchain application. We will study all the primitives that contribute to blockchain in this chapter.

Hashing is used in most blockchain applications to create links between blocks. It is also used in consensus algorithms such as proof-of-work, which basically exploits the hashing power of the computing systems that form the blockchain network. Digital signatures are used to sign and verify events such as transactions. Asymmetric key cryptography is a core concept in blockchain applications that gives identity to the participants of the network or can prove the ownership of assets.

Hence, cryptography is an excellent tool for accomplishing some of the tasks required to replace trusted third parties and create a trustless environment in a decentralized network.