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Review Paper On Application of Cryptography in Blockchain

The document discusses the application of cryptography in blockchain technology. It explains that blockchain uses cryptographic techniques to securely store transaction records in a decentralized public database. The core layers of any blockchain platform, including the network, consensus, data, contract, and application layers all rely on cryptography. Specifically, blockchain uses techniques like hashing, symmetric/asymmetric encryption to validate transactions, secure private keys, and immutably link new blocks of data to previous ones. While cryptography enables core blockchain functions, the document notes there is still room for more secure cryptographic algorithms to address potential vulnerabilities like private key cracking or less secure blockchain endpoints.

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Jayalakshmi V
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73 views

Review Paper On Application of Cryptography in Blockchain

The document discusses the application of cryptography in blockchain technology. It explains that blockchain uses cryptographic techniques to securely store transaction records in a decentralized public database. The core layers of any blockchain platform, including the network, consensus, data, contract, and application layers all rely on cryptography. Specifically, blockchain uses techniques like hashing, symmetric/asymmetric encryption to validate transactions, secure private keys, and immutably link new blocks of data to previous ones. While cryptography enables core blockchain functions, the document notes there is still room for more secure cryptographic algorithms to address potential vulnerabilities like private key cracking or less secure blockchain endpoints.

Uploaded by

Jayalakshmi V
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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REVIEW PAPER

Application of Cryptography on the Blockchain

Sheping Zhai’s research on the seemingly perplexing topic Blockchain, published on 2019 is an article
discussing the enormous applications of cryptography in blockchain and the existing problems.
Blockchain is a peer-to-peer network that allows the data records to be stored in a public database
as a list which are linked using cryptographic techniques. Therefore, cryptography technology
occupies the most paramount position in the blockchain.

In the first section of this article, the author discusses about how blockchain works and why is it
necessary to use cryptography in blockchain. It starts with the basic definition of Blockchain
infrastructure being a decentralized database which integrates the method of mutual maintenance
by multiple parties. Furthermore, the author discusses about how the blockchain platform being
divided into private chain, public chain and alliance chain. Since blockchain does not uses the
traditional central node method and the nodes do not trust each other, the transaction records and
the user privacy have to made secure by using cryptographic techniques.

Various layers of blockchain platform are discussed in the later sections of the article. Those include
the network layer, consensus layer, data layer, contract layer and application layer. The network
layer includes the protocols and rules for data transaction and verification. The consensus layer
includes the general agreement on the validity of block data in the decentralized system. The data
layer uses the block data structure where each node encloses all the data transactions ensuring the
integrity of data storage. The application layer includes Bitcoin, Ethereum and Hyperledger and
many more.

In the subsequent sections, the hash function is discussed. A hash function is a function that takes an
input string of any length and transforms it into a fixed length. The fixed bit length may vary
depending on the type of hash function used. The fixed length output also known as hash is the
cryptographic by product of a hash algorithm. The bitcoin Blockchain uses SHA-256 (Secure Hash
Algorithm) hashing algorithm developed by the National Security Agency (NSA) in the USA. In the
blockchain, the hash value of the previous block is stored in the header of each block. The hash
function can be used to generate public-private key pairs. The hash functions produce unique
outputs and are one-way functions unlike other encryption techniques where the encrypted
message can be decrypted.

In the later sections, symmetric encryption and asymmetric encryption are discussed. In an
asymmetric encryption or public key encryption algorithm, the encryption key and the decryption
key are different unlike symmetric encryption, and are called a public key and a private key,
respectively. The private key needs to be generated by a random number algorithm, and the public
key is calculated by performing an irreversible algorithm. Elliptic Curves Cryptography is a common
asymmetric encryption algorithm. The security depends on the difficulty of the elliptic curve discrete
logarithm problem. In the bitcoin system, the key pair consists of a private key and a unique public
key. The private key is randomly chosen in between 1 and 2 256 since it is a 256-bit number and it
needs to be chosen randomly and should be not predictable. Then the randomly generated private
key k is multiplied with the defined generation point G on the curve to obtain another point on the
curve. That is, the corresponding public key K. The elliptic curve relies on the discrete logarithm
problem. The relationship between k and K is fixed, but it can only be a single operation, that is, K is
obtained from k, and k is difficult to obtain from K. The generation of currency addresses uses
different algorithms on different platforms. In a cryptocurrency system in which the blockchain, the
digital currency owner hashes the content of the previous transaction order of the digital currency
and the address of the next owner. The data digitally signed with its own private key is appended to
the end of the transaction list and sent to the recipient. The recipient needs to verify the received
information to prove the information of the previous owner, and then verify the owner of the
transaction. Each transaction in the blockchain records the current owner, previous owner, and next
owner of the currency. Therefore, the whole process of money can be traced back, effectively
avoiding double payment, false transactions and other issues.

Lastly the security problems of blockchain are discussed. Even though block chain uses advanced
cryptographic methods, it still has some weak links. The private key is generated by the random
number generator in the computer system, which is called pseudo-random, has certain regularity,
and has the threat of being cracked. Once it is cracked, the privacy and security of all data in the
blockchain will no longer exist. Most blockchain transactions have endpoints that are far less secure.
These vulnerabilities at Blockchain Endpoints makes it difficult to be completely reliable. Therefore, a
more secure and reliable cryptographic encryption algorithm is needed to improve the security of
the blockchain.

In conclusion, these cryptographic features make it possible for blocks to get securely linked by
other blocks, and also ensure the reliability and immutability of the data stored on the blockchain.
There are a huge number of applications of blockchain technology, and cryptography makes it
possible. Since there are some vulnerabilities in blockchain even when such advanced cryptographic
techniques are used, it is necessary to make more reliable and secure cryptographic algorithms in
the future.

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