Today’s episode of “Crypto Capsule” will start with a main saying: “Every cryptocurrency is a digital currency, but not every digital currency is a crypto one.” So, what is cryptography? and what are cryptocurrencies?
Encryption is cryptography, which means changing the original state to another one that can only be discovered with the help of an encoder. The higher the strength of the equations used for coding, the more the coding process fulfills its purpose.
Encryption, commonly known as (Cryptograph), is the conversion and modification of data aiming to protecting it. So that it can only be used by its original owner, and only with his permission, as he is the one who owns the key to decipher the code. Check paydayloansnow.co.uk
Cryptography is an ancient science, as it has been used in many political, diplomatic and military purposes for ages. But currently it is used to convert the currencies that we can exchange into encrypted codes that cannot be hacked or controlled, and sometimes can’t be tracked by anyone.
Blockchain technology is the mainstay of cryptocurrencies. Where many cryptographic algorithms and techniques are used in the currency industry, then blockchain-based technology is used to transfer these algorithms and technologies that became coins that have a name and symbol recognized by customers.
Despite the high security of cryptocurrency, it carries the same amount of risk, in the event that the computer crashes and there is no full copy of the information, or in the event of losing your key, this means the loss of the money placed in those currencies.
Two Levels of Encryption
There are two encryption levels, the first one allowing to track the movement of the currency without knowing the identity of the major participants, such as Bitcoin. As for the second one, no one can track the movement of the currency or the identity of the one who is trading it, such as the Monero.