Cryptography is a technique used to protect communications and information through the use of code. The aim is to ensure that only the creator and recipient can read and process the information. In this article, we will take a closer look at cryptography and its integral role in Ethereum.
The word cryptography combines the prefix ‘crypt’, meaning ‘hidden’, with the suffix ‘graphy’, meaning ‘writing’.
In computer science, cryptography is a technique that is derived from mathematical concepts combined with a set of rule-based calculations, known as ‘algorithms’.
Cryptology is used to transform communications and information into messages that are difficult to decipher. Deterministic algorithms are often use for digital signatures and verification, as well as cryptographic key generation, to protect web browsing and data privacy, and confidential communications, such as email and credit card transactions.
What Is Ethereum?
Ethereum is a multinational, decentralized money platform with many new applications. On Ethereum, users can write code to control money, as well as building applications that are accessible anywhere in the world.
Blockchain is commonly associated with Bitcoin, though it has many other potential applications reaching far beyond digital currency. In fact, blockchain is used in several hundred different applications today.
Until recently, creating blockchain applications required a complex understanding of cryptography, coding, and mathematics. However, times have changed. From digitally recorded property assets to regulatory compliance, blockchain has facilitated the development of previously unimagined applications.
Ethereum is a public blockchain network. Although there are several key differences between Ethereum and Bitcoin, the most important distinction is in terms of capability and purpose.
Although Ethereum users mine for Ether in the same way that Bitcoin users mine for Bitcoin, Ether is more than a tradable currency. It can be used by app developers to pay for services and transaction fees via the Ethereum network. The Ethereum Virtual Machine enables users to run any program, regardless of programming language. It streamlines the task of creating blockchain applications, simplifying processes and making them more efficient. Ethereum facilitates development of potentially thousands of different applications, all from a single platform.
According to ConsenSys cofounder, Andrew Keys, Ethereum’s Serenity will launch by the end of 2020. Keys recently announced that Ethereum will move stridently into Phase 1 of Ethereum 2.0, proceeding with the launch of shard chains. Keys believes that development of Serenity will effectively turbocharge Ethereum, bringing the platform closer to 2.0 levels of scalability.
Cryptography: One of Ethereum’s Key Components
Cryptographic proofs are critical to the operation of all blockchain systems, including the Ethereum platform.
About Domen Zavrl
With qualifications in cryptography gained through his studies at Stanford University, Domen Zavrl is well aware of the integral role of cryptography in advancing Ethereum technologies. Mr Zavrl has two PhDs, the first in Applied Macroeconomics which he gained from Klagenfurt University. His second PhD is in System Dynamics, exploring stabilisation of non-linear real-life systems.
Domen Zavrl completed Dartmouth University’s Tuck Executive Education. He studied Finance Accounting and Online Bridge Finance at Tuck School of Business, Dartmouth University’s graduate business college. Domen Zavrl also attended Duke University, where he studied Sports and Society.
In a professional capacity, Mr Zavrl has worked with some of the finance industry’s most prestigious companies, including OCR AG, Enpetro, MBB Ista, and Framingham Asset Management, the organisation that successfully bid on Postbank BH. He is a member of the Institute of Internal Auditors and has a special interest in macroeconomics stabilisation policy and institutional economy.