How to send and receive Bitcoin and the science behind Cryptography
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Cryptography is the glue that holds the blockchain together. Cryptography is defined as “ the practice and study of techniques for secure communication in the presence of third parties called adversaries. More generally, cryptography is about constructing and analysing protocols that prevent third parties or the public from reading private messages; various aspects in information security such as data confidentiality, data integrity, authentication, and non-repudiation are central to modern cryptography.” – Wikipedia
Basically Cryptography is the practice of keeping information secret. This forms the basis of the blockchain in that every transaction is made visible to the public but the transaction information is secured by cryptographic protocols making it highly secure and anonymous. This means that you can see me transferring bitcoin to another users wallet BUT you don’t know it’s me. Cryptography keeps my identity secret by using both a Private Key and Public Key.
What is a Private Key
A private key in the context of Bitcoin is a secret number that allows bitcoins to be spent. Every Bitcoin wallet contains one or more private keys, which are saved in the wallet file. The private keys are mathematically related to all Bitcoin addresses generated for the wallet. – bitcoinwiki
Essentially a private key is a cryptographically secured key within a wallet that allows you to spend either your bitcoin or any cryptocurrency. Private keys are a randomly generated to promote greater levels of safety and security. They come with whatever wallet you decide to choose to store your cryptocurrency.
More on Wallets, click here
Example of receiving Bitcoin using the Exodus Wallet
If I want to receive bitcoin from someone i need to supply my Private Key to them. It is secured using cryptography and creates a ‘road lane’ directly between myself and the sender. When he sends me bitcoin using this private key it will be encrypted and only my private key can unlock it.
What is a Public Key
A public key is a cryptographic key that can be used by anyone on the blockchain to SEND cryptocurrencies to another person. This key encrypts the ‘information’ in order to keep it safe and secure. The receiving wallets de-crypts the information from the sender and in this case receives the payment.
Example of sending Bitcoin using the Exodus Wallet
I want to send Bitcoin to someone. I need there private key known as a bitcoin address. I enter the amount i want in either Cryptocurrency or Fiat and click send. You will note there is always a transaction fee. Some blockchain cyrptocurrencies have zero transaction fees while others like Bitcoin still have a fee.
Cryptography uses complex mathematical models and formulas to exercise the levels of security required by the blockchain technology. The underlining maths of the bitcoin blockchain is known as ECDA – Ecliptic Curve Digital Algorithm. ….
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Cryptography is a very complex field of study and it is always changing especially now with the rise of bitcoin and other cryptocurrencies becoming main stream. If you want more in depth knowledge of cryptography then visit the following links to learn more.
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