How Cryptography Works In Blockchain (An Overview)


For the uninitiated, blockchain is a distributed ledger that’s been gaining popularity for over a decade. It’s the technology that powers cryptocurrencies like Bitcoin, but it has far more uses than just digital money. In fact, it has the potential to revolutionize everything from voting systems to supply chains and healthcare records management. But how does it work? This article will explain what exactly makes up this cutting edge technology and why cryptology plays such an important role in its operation—all in terms of laymen’s terms.

What is Blockchain?

Blockchain is a type of decentralized ledger that maintains a continuously growing list of records. These records, called blocks, are linked to each other through cryptography and are secured by network participants called miners. Each block has a timestamp and contains information about the previous block (in terms of content), a hash pointer to the next block in sequence and data specific to that particular transaction or action being recorded on the blockchain (such as who sent what cryptocurrency).

The first time someone accesses their wallet online after installing an application on their computer or smartphone they will be asked for two things: their private key which allows them access into their wallet so they can make transactions; and their public key which allows others send them money via email address associated with said public key

How Does Blockchain Work?

Blockchain is a distributed ledger. It’s a database, but instead of being stored on one server, it’s distributed across thousands or even millions of computers around the world. Each computer has its own copy of this database and updates it independently from all others.

Blockchain is public: anyone can see what’s going on in any block of transactions by looking at the entire history of blocks (a block chain). The reason this matters is that it makes fraud impossible because there are so many copies around that no single person could change enough records before someone noticed something was wrong–and even if they could do so undetected, there would still be so many unaltered versions available online that anyone could check their version against those too!

Cryptography in Blockchain

Cryptography is a method of protecting data. It can be used to protect data from being read by anyone other than the intended recipient, even if there are multiple copies of it. This is important in blockchain because it ensures that transactions cannot be tampered with or altered by malicious actors.

Cryptography has been around for thousands of years and has been used throughout history by governments and military leaders alike to secure their communications from adversaries who might intercept them and gain access to sensitive information about troop movements or plans for attacks on enemy forces. Nowadays we all use cryptography every day when we send emails or browse websites that require us to log into them using passwords, which are just long combinations of letters and numbers (e-mail addresses also contain this type of information).

A layman’s overview of how cryptography works in blockchain

Cryptography is the science of encoding information in such a way that only those who have the key can access it. The process involves two keys: one public and one private. The public key can be shared with anyone; it’s used to encrypt data, which means that only someone who has the private key will be able to decrypt it.

When you send someone an encrypted message, your computer will generate a random string of numbers known as ‘public key’ or ‘nonce’, then use this nonce along with other information (like sender’s address) to generate another string called ‘signature’. This signature is then combined with all other signatures on every block before being added at the end of each block – creating what we call blockchain!


In this article, we have given you a brief overview of how cryptography works in blockchain. We hope that by now you have a better understanding of how cryptography is used in this technology and what it means for the future of finance and business. As always, if there are any questions or comments please feel free to leave them below!

Zenia Beseke

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