Cryptographic Aspects of Block-chains and Bitcoins Summary

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Cryptographic Aspects of Block-chains and Bitcoins
Block-chain is a decentralized, traceable, and non-tamperable distribution database that integrates peer to peer protocol, a consensus mechanism and other technologies. The database departs from the traditional central node maintenance mode and instead opts for a technique of mutual maintenance by various users to achieve the appropriate information supervision among the users. The block-chain platform can be divided into three main categories: public chain, private chain, and alliance chain (Zhai et al. 1). The public chain is also called permissionless block-chain because it is not restricted to a specific group of users. In this application, anyone can engage in the maintenance and access of information on the block chain. Besides, it is easy to deploy the applications and one can also completely decentralize it without interference from the institution. The private chain, on the other hand, limits the qualification of the participating nodes. The alliance chain is operated by several institutions and requires registration permission.
Bitcoin is currently the most successful digital currency. Proposed by Nakamoto in 2008, it is also the most typical application of block-chain. In addition, the block-chain has increased the value of its application in various ways and has also shown a potential to shape the society. The block-chain technology was developed to facilitate the functioning of Bitcoin. Therefore, bitcoin was the first example of block-chain in action and it would not exist without block-chain. Therefore, even though bitcoin relies on block-chain technology as a digital currency, block-chain is more than just bitcoin. In a simpler language, a block-chain is a computer that helps store data (Marr). In more technical terms, it is a database containing a wide range of user information distributed across several computers. Bitcoin, on the other hand, is a decentralized digital currency or an electronic payment system, which users can use to make electronic payments or transfer the bitcoins without third party intervention.
Introduction to Cryptography
Block-chains have inner components that shape their workings. Among these inner components is cryptography, which refers to the protocols developed to bar third parties from accessing and viewing private data. Modern cryptography combines a variety of subjects for maximum efficiency. The key subjects include mathematics, computer science, engineering, and physics. The key terms used to explain cryptography include encryption, decryption, and cipher. Encryption is the process of encoding texts into an unreadable format. The purpose of encoding is to ensure that even if the information leaks to the outside, it will not be easy for the third party to understand the texts. Decryption is the opposite of encryption and entails conversion of the unreadable message into its initial format. A cipher refers to the algorithm that helps in the process of encryption or decryption. It mainly entails an outline of the steps necessary to either encrypt or decrypt the information. An example of such an algorithm is the Caesar Cipher, an encryption algorithm used by Julius ...