Cryptographic Technologies in Blockchains: Data Consistency, Transparency and Privacy

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With the potential to incorporate distributed data storage, peer-to-peer communication, digital encryption technology, consensus processes, and other computer technologies, blockchain has become very popular. 

A cloud computing service might include blockchain technology and blockchain networks. 

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Better security of information, simple traceability, increased system interoperability, decentralisation, quicker system discovery, and many other benefits are made possible by using blockchain in cloud computing.

For blockchain to gain popularity, the assurance of user identity and transaction data security is very important. In this article, we will talk in detail about the role of cryptography in blockchain technology

Importance of Security in Blockchain

Blockchain will need to store and manage a lot of data because it is intended to be a decentralised distributed database. 

Data privacy and security are becoming more commonplace as data theft rises and the general population realises how sensitive large organisations may misuse data.

Blockchain ensures reliable, trustworthy, and secure data storage in digital databases that are not under any authority's control. 

These databases also provide the option for trackability, and this openness enables anyone to verify the blockchain's immutability. Cryptography, which protects user transaction information and privacy, provides this security.

What is Cryptography in Blockchain?

Security of data using cryptography prevents unauthorised access. Cryptography is used in blockchain for safeguarding transactions taking place between two nodes in a blockchain network. 

In any P2P network, the messages are protected using cryptography, and a blockchain's link blocks and block information are secured with hashing. 

Cryptography's main goals are securing transactions and participants while protecting against double-spending. 

It aids in protecting various blockchain network transactions. It makes sure that only those people may acquire, read, and handle the transaction intended for them. 

Types of Cryptography

The different types of cryptography are as follows:

Symmetric Cryptography: 

This cryptography employs an encrypted code, key, or cypher to convert inputted information into a cypher. 

The sender and receiver use the same key for encryption and decryption, making it the first instance of cryptography. This method is well renowned for being simple to use and having a fast data processing speed. 

The other sort of cryptography enters the picture, as will be further discussed, to guarantee the integrity of the keys used for encryption. 


  • Another name for it is secret-key cryptography.
  • The secret can be kept by both parties using the same key.
  • It is right for encryption in bulk.
  • It transfers data faster and with less computing power.

Asymmetric Cryptography: 

As the name signifies, asymmetric cryptography encrypts and decrypts the information using separate keys between the sender and recipient. With this method, the information is transmitted using two keys—the public and private keys. 

The communication is encrypted and decrypted while being sent using the public key and is unlocked using the private key. 

Anyone online can decrypt it via their public key, even when someone adds a set of digital signatures that use private keys.  


  • It is known as public key cryptography.
  • It is frequently employed for secret key sharing in symmetric cryptography.
  • It takes a while to process something.
  • In determining the reliability of the web server, it is crucial.

Hashing Cryptographically: 

The third kind of cryptography is "Hashing," which involves employing cryptographic methods to transform any plain text collection into a cryptographic hash (a distinctive data string). 

In contrast to the previous two cryptography techniques, putting data through cryptographic hashing makes it impossible to reverse it. 

A substantial quantity of data can be reduced using the hashing method to compress the data into a short text string.  

A cryptographic hash's characteristics are:

  • The hash function stays constant for each message.
  • The hash value will significantly alter with a slight modification in the contents.
  • The output hash algorithm cannot predict the input value.
  • They rely largely on bitwise operations, making them quick and effective.

Role of Cryptography in Blockchain 

The fundamentals of cryptography were used to develop blockchain technology. The benefits of cryptography in the following ways:


Cryptography is necessary for the security of the blockchain ledger. The primary objectives of cryptography are to safeguard transactional data, user privacy, and data consistency. 

Every transaction is kept a record of using encrypted data on the blockchain. Users can buy and sell bitcoins and secure access to their data using their public and private keys.

Blockchains maintain the root hashes which securely encrypt each transaction using cryptographic hashing. If someone tries to modify any kind of data in the blockchain, a completely different hash will be produced at the root hash. 

Other users are able to find out whether the data has been hacked by checking the root hash to the one on their machine.


With cryptographic hashing, infinite transactions could be safely stored in the network. As a result of integrating multiple transactions into one hash, blockchains can continue to grow at scale.


Cryptographic hashing is irreversible, therefore transactions cannot be reverted. Since they are protected from any hostile behavior, all users may rely on the veracity of the digital ledger.


Asymmetric encryption is used in cryptography to safeguard data and communications against unauthorised disclosure and access on their network.


This characteristic of cryptography makes it crucial for blockchain. It enables blocks to be securely linked by other blocks and ensures the data's reliability. 

It also ensures that no attacker can create a valid signature for hypothetical queries using the signatures of previous queries.


The non-repudiation work offered by the digital signature protects against any denial of a communication sent by the sender. 

This benefit is related to collision resistance, or the ability to easily distinguish one message from another since each input value has its hash function, preventing clashes between delivered messages.


Thanks to cryptography, we can safely send Bitcoin, encrypt data, and preserve a record of previous transactions. 

Without a centralised authority, it ensures that blocks will keep getting added to the chain indefinitely and allows us to exchange cryptocurrencies safely.

Blockchains can store a huge number of transactions while using cryptographic hashing to protect those transactions from hackers. Online transactions are scaled, validated, and made secure.

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