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Decryption is one side of the cryptography process, working in tandem with encryption to secure and reveal information. Cryptography is the coded network that forms the basis of the blockchain, the technology that, in turn, forms the basis of cryptocurrency. Understanding decryption is key to understanding how data security and privacy function on the blockchain, ensuring that each and every transaction remains secure, transparent, and accessible.
In this article, we offer an in-depth look into what decryption means, why it is never a standalone process, and its applications in cryptography and beyond.
What is the difference between encryption and decryption?
Encryption and decryption are two halves of the same coin, forming a complementary pair. These symbiotic processes are essential in cryptography, and work together to protect and securely receive data. While encryption is the process of converting plain text into coded text (also known as ciphertext) to protect information from unauthorized access, decryption is the process of converting coded text back into its readable form, and making the information accessible again. Depending on the cryptographic method, either a public or private key can be used to perform encryption, whereas decryption only requires the private key to unlock the encrypted text.
How does decryption work in blockchain technology?
Whenever someone makes a crypto payment, this initiates a blockchain transaction. The details of this transaction, including the sender, receiver and the amount being sent or converted, are encrypted using cryptographic algorithms. This ensures that the data is kept secure and tamper-proof while being sent across the network. Before being added to the blockchain, each transaction undergoes a process called hashing. A cryptographic hash function, such as SHA-256 in Bitcoin, converts the transaction data into a fixed-length, irreversible string of characters. This hash functions as a unique fingerprint for the transaction, preventing alterations and ensuring authenticity.
Each new block contains a reference to the previous block’s hash, creating a secure and unchangeable chain of data. This ensures that if someone attempts to modify a transaction, the entire chain would be affected, making fraud very easy to detect. Then, once a transaction is recorded on the blockchain it must be decrypted by the recipient. This is where the private keys come in. Every blockchain user has a pair of cryptographic keys: a public key (which they share with others to receive transactions) and a private key (also called a decryption key, which they keep secret and use to decrypt and access funds). Once decrypted and verified, the transaction is permanently stored on the blockchain, where all data is immutable.
Decryption beyond cryptography
Decryption plays a hugely important role in cybersecurity and data protection, in everyday uses beyond the realm of the blockchain. Instant messaging apps, such as WhatsApp or Signal, that we use on a daily basis employ end-to-end encryption. These encrypted messages therefore require decrypting once they reach the intended device, to allow only the recipient, or recipients, to read the messages. Encryption and decryption are also used to secure online banking transactions, emails, and sensitive medical records, ensuring that only authorized parties are able to access this confidential information.
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