{"id":635185,"date":"2025-03-13T11:11:06","date_gmt":"2025-03-13T11:11:06","guid":{"rendered":"https:\/\/insidebitcoins.com\/?page_id=635185"},"modified":"2025-03-13T11:16:18","modified_gmt":"2025-03-13T11:16:18","slug":"what-is-encryption-in-crypto-a-simple-guide","status":"publish","type":"page","link":"https:\/\/insidebitcoins.com\/crypto\/what-is-encryption-in-crypto-a-simple-guide","title":{"rendered":"What Is Encryption in Crypto? A Simple Guide"},"content":{"rendered":"\n

Encryption has helped shape human civilization for over 4,000 years, evolving from simple ciphers on the tombs of Pharaohs to the advanced encryption algorithms that secure our entire digital world today. Modern encryption is more than just codes and algorithms. It’s a blossoming field of technology that forms the foundation of not just secure messaging but cryptocurrencies, financial transactions, nation-state cybersecurity, and much more.<\/p>\n\n\n\n

However, few onlookers outside of the cryptography world know exactly how it works and how essential it is in modern life.<\/p>\n\n\n\n

What Is Encryption?<\/h2>\n\n\n\n

Encryption is a powerful mathematical method used to protect data of any kind by converting it from a readable format to a code or ciphertext. This makes it (ideally) impossible for third parties without the proper encryption key to access and read said data.<\/p>\n\n\n\n

Encryption can be as simple as the 2,000-year-old Caesar cipher, where you shift each letter by a certain number to encode a message, or as complex as modern cryptographic mathematical models such as AES-256, which uses convoluted algorithms and billions of possible keys to secure data.<\/p>\n\n\n\n

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The Caesar Cipher | Source: Wikipedia<\/figcaption><\/figure>\n\n\n\n

How Does Encryption Work?<\/h2>\n\n\n\n

Encryption is a process that protects original information by transforming it into an unreadable format using a mathematical formula. Imagine inventing a secret language to use with your friends that is unrecognizable to anyone who doesn’t have the right “key” to decode it. That would be a simple form of encryption.<\/p>\n\n\n\n

When information is encrypted, two kinds of keys are often generated: the private key and the public key. The public key is the coded message, which can be shared openly. The private key is the only way to reverse the encryption back into the original information, and it must be kept secret and secure. If anyone obtains both the private and public keys, they will be able to decode the information with ease.<\/p>\n\n\n\n

What Are The Most Common Encryption Algorithms?<\/h2>\n\n\n\n

There are two main types of encryption: symmetric encryption and asymmetric encryption. Asymmetric encryption, which was detailed above, uses both a private key and a public key. The public key is used for encryption, whereas the private key is used for decryption, which is why it must be kept secret.<\/p>\n\n\n\n

Symmetric encryption, on the other hand, only uses one key. This key is used both for encryption and decryption, so it must also remain confidential at all times. Symmetric encryption is generally much faster and more efficient, though secure key distribution is more difficult given that it uses the same key for encryption and decryption. Both types of encryption algorithms are popular in the crypto industry and in general, depending on the use case.<\/p>\n\n\n\n

Here are some of the most common encryption algorithms that you have almost certainly already used, whether you knew it or not:<\/p>\n\n\n\n

Common Asymmetric Encryption Algorithms:<\/h3>\n\n\n\n