The digital coin is a virtual currency that uses cryptography(Cryptography is the practice and study of securing communication and information from adversaries and opponents) for protection. Digital coins are also known as cryptocurrency.
There are different types of traditional currencies like Indian rupees, us dollars etc. Digital coins operate on decentralised networks based on blockchain technology.
The key feature of digital coins( cryptocurrency).
Decentralisation: Most digital coins are not controlled by a central authority, such as a government or bank. Instead, they rely on blockchain technology to maintain security and transparency.
Blockchain: also known as Distributed ledger technology(DLT).
This technology involves a secure, decentralized database that stores and records transactions across a network. Therefore data is stored in blocks each data is recorded as a block of data in the blockchain and all the blocks are linked to each other forming a chain and this is called blockchain in digital coin.
Cryptography: digital coins use cryptographic techniques to secure transactions It involves techniques for encrypting and decrypting data to ensure authentication.
Cryptography is a cornerstone of modern cybersecurity and is used in various applications, from securing online transactions to protecting sensitive pieces of information.
Common uses of cryptography in our daily lives.
- WhatsApp ,signals and telegram(secret chats)
- Email encryptions
- SSL/TLS Encryption (HTTPS websites)
- Two-Factor Authentication
- Cloud Storage Encryption
- Blockchain & Cryptocurrencies (Bitcoin, Ethereum, NFTs)
- Aadhaar e-KYC, Digital Certificates (SSL, Code Signing)