Meet the world’s first carbon-negative blockchain – wknd.

Published: Fri 19 Aug 2022, 11:28 AM

Last updated: Fri 19 Aug 2022, 11:30 AM

With the ability to transfer value peer to peer securely, transparently, and near-instantly without intermediaries, blockchain is arguably the most transformative technology of our time. Yet, with many popular chains like Bitcoin and Ethereum still relying on the energy-intensive proof of work (PoW) algorithm, the progress to economic freedom comes at a cost to our environment. Algorand, the world's first carbon-negative blockchain, presents a scalable and sustainable alternative that has already garnered a wide community and been adopted by leading organisations around the world including being selected as the official blockchain platform of FIFA.

What is Algorand?

Pledging to be the greenest and most efficient blockchain, Algorand provides institutional-grade infrastructure that's capable of hosting a wide array of decentralised applications (dApps) and digital assets. In an era of growing global concern over the climate crisis, Algorand provides solutions that are both powerful and environmentally sustainable.

With increased attention paid to the energy usage of PoW blockchains like Bitcoin, many chains have sought to lower their carbon footprints by adopting more environmentally-friendly proof of stake (PoS) consensus mechanisms. However, most of these solutions sacrifice decentralisation.

Because the wealthiest validators in PoS (those that provide the most 'stake' to the network) have disproportionate control, governance ends up in the hands of just a few network participants. Algorand, however, utilises a unique algorithm called 'Pure Proof of Stake' (PPoS) that ensures that none of the three key elements of the blockchain trilemma scalability, security, and decentralisation are compromised.

How Does Algorand Work?

Algorand's PPoS algorithm prioritises fairness and decentralisation. Just like other PoS chains, users can become block validators on Algorand by staking its native $ALGO token. However, unlike other PoS chains, PPoS selects block validators randomly and anonymously, giving equal opportunities to all network participants regardless of their stake and ensuring that no group of validators gains more control than the rest.

PPoS also promotes decentralisation as the identity of the next block validator is unknown to other network participants. In this way, Algorand's unique approach to security relies on the honesty of the majority of network participants rather than a limited subset of a few.

As an open-source blockchain, anyone can build on Algorand, safe in the knowledge that their contributions aren't harming the environment. Every transaction is completed in four seconds, making this carbon-negative blockchain fast and scalable. Algorand is already home to a growing number of dApps and is developer friendly by design. Rather than having to learn a new programming language like Solidity to start building smart contracts, developers can build assets by using a language they're familiar with such as Java, JavaScript, Go, Python, or Rust.

Who Is Behind Algorand?

The Algorand blockchain was founded in 2017 by Silvio Micali, a professor of electrical engineering and computer science at MIT. With a background in cryptography and secure protocols, Micali is the co-inventor of pioneering technology such as Zero-Knowledge Proofs and Verifiable Random Functions, both widely used in cryptography today.

Besides founding Algorand, Micali has received multiple awards and recognition for his work including the Turing Award in computer science, the RSA prize in cryptography, and the Gdel Prize in theoretical computer science. He graduated from the University of Rome and holds a PhD in computer science from the University of California.

How Is Algorand Carbon Negative?

According to a recent estimate, PoS chains are ~2000x more energy-efficient than PoW chains, making their contribution to carbon emissions negligible. However, Algorand takes its commitment to be green even further as the world's first carbon-negative chain. In April 2022, Algorand announced that it would offset all its carbon emissions by implementing the first smart contract to automate the process. A percentage of all transaction fees on Algorand now goes toward carbon offsets.

Algorand has also partnered with ClimateTrade, a blockchain marketplace for CO2 carbon offsetting, to further help maintain a carbon-negative network.

The Algorand (ALGO) Token

ALGO is the native currency of the Algorand blockchain and is used to pay for transaction fees on the network as well as reward network stakers and validators. As the Algorand network runs on a variation of PoS, there is no energy-intensive mining. Any user can become a validator by staking their ALGO tokens. The ALGO token has a maximum supply of 10 billion.

What Other Problems Does Algorand Solve?

Beyond a deep commitment to sustainable technology, Algorand is fast. Transactions settle in under four seconds, regardless of on-chain volume, and cost just fractions of a penny. With the well-documented scalability issues of Layer-1 chains like Ethereum that cause lengthy wait times and sky-high transaction fees, this is music to the ears of both end-users and dApp developers who often find themselves priced out of Defi trades or NFT transactions.

Algorand's strength of vision, ease of use, and agility led to its selection by FIFA as the International Federation of Football Association's official blockchain platform. Algorand will be a FIFA World Cup Qatar 2022 Regional Supporter in North America and Europe, and a FIFA Womens World Cup Australia and New Zealand 2023 Official Sponsor, as well as helping the association develop its digital assets strategy.

Final Thoughts

With one of the most widely recognised contributors to modern cryptography as its founder and a highly accessible, scalable, and efficient network that's being adopted by some of the world's largest names, Algorand is rapidly gaining traction. For founders, builders, investors, and strategists passionate about bettering the world's financial future while ensuring the preservation of its climate Algorand makes a compelling choice.

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‘FutureFi’: Crypto is transforming the green finance universe | Greenbiz – GreenBiz

Hows your green finance IQ? Are you up with crypto, down with green bonds? Whats the difference between sustainable finance, ESG investing and impact investing? And how is your Web3, blockchain and AI savvy?

Pass the above tests? Then what about DeFi, NFTs, DAOs, khaki bonds, double materiality, green shorting, impact insurance, stablecoins and smart contracts?

You can look up the definitions of these and other terms making up the lingo of green finance and you had better do so quickly, if you havent already. As I heard more than once at GreenBizs recent GreenFin 22 conference, this lexicon refers to practices, products and strategies that are in play today "FutureFi" is happening right now, not at some far-off date.

The main driver is cryptocurrency, digital currency that uses cryptography such as blockchain to manage transactions. "Crypto is money built for the internet," was the speakers mantra at "The Future of Finance" panel I attended. "Its the new baseline for the transformation of value," asserted moderator David Bennell, chief sustainability officer of Hyphen Global AG. This is the next generation of value to manage assets, whether stored or transferred: a digital token economy.

The premise is that digitalization makes investment more efficient more available to more people, with more transparency via blockchain accounting. Just as the rewiring of the internet, a transformation called Web3, is aimed at decentralizing monopoly controls by Big Tech, so it goes with digital finance. This results in decentralized finance, or DeFi, an umbrella term for financial products and practices developed for use with the blockchain, including many for green finance investing. They include items such as tokenized carbon credits, non-fungible tokens (NFTs) and stablecoins.

DeFi also produces decentralized autonomous organizations (DAOs), which guide allocations through smart contracts executed by artificial intelligence algorithms. One example given by Jamie Chapman, principal of ESG for Superlunar, was that of Big Green, a nonprofit that was originally a school garden project but, under COVID restrictions, converted into a DAO that democratizes their grant giving, thereby disrupting traditional philanthropy. Big Green claims to be the first nonprofit-led, philanthropic DAO.

The main argument underlying the logic of DeFi is for resiliency through a widely distributed system. Put another way, it takes advantage of the wisdom of crowds rather than guidance from a small, concentrated group of traditional financial professionals (such as those who brought us the global financial crisis in 2008-09). The qualities of enhanced transparency and data-driven digitalization should especially amp up the ability of green investors to manage risk and volatility while maximizing potential benefits.

This paradigm-shifting investment disruption is well under way.

Sounds great but there are issues that throw some shade on the bright picture of this futuristic finance landscape. For example, digitalization depends on data and to judge by the current concerns about the inconsistency, incompleteness and non-comparability of ESG data, this is a major challenge.

The biggest issue may be crypto itself. Created as a way to handle money outside of traditional banking systems, it has its own transparency and accuracy problems. Recent headlines about crypto are rife with bankruptcies, fines, hacks, fraud, insider trading and opaque practices within crypto world. The crypto crash has resulted in a drop of $2 trillion in valuation across the sector since January. Crypto companies have loaned to other crypto platforms, leveraging bullish buys with insufficient collateral. Some apparently paid early investors with incoming revenue from new inflows, a model resembling a classic Ponzi scheme. This is an industry ripe for regulation, and it appears that is imminent, with the U.S. Securities and Exchange Commission levying criminal charges against fraudulent crypto practices.

DeFi decentralized finance gets a large portion of the blame for the current meltdown. Forced selling by retail depositors of crypto who invested for yield are the culprits, Martin Green, CEO of quant trading firm Cambrian Asset Management, told CNBC. "2020 onwards saw a huge build out of yield-based DeFi and crypto shadow banks.' There was a lot of unsecured or undercollateralized lending as credit risks and counterparty risks were not assessed with vigilance. When market prices declined in Q2 of this year, funds, lenders and others became forced sellers because of margins calls."

There are also external issues: Inflation, bearish market conditions and a looming possible recession are macro-economic dampers on innovative products and practices.

Then theres soaring energy prices, and the fact that crypto mining is an energy hog of huge proportions. The tens of thousands of specialized computing machines that create cryptocurrency and manage trades run 24/7. Bitcoin, the worlds largest, uses an estimated 150 terrawatts of electricity annually more than Argentina, a country of 45 million. And that energy production is also emissions-heavy, putting out 65 megatons of carbon dioxide, comparable to the emissions of Greece. In Texas alone, crypto miners may increase energy demand by mid-next year by 6 gigawatts, the equivalent of adding another Houston to the grid.

Its important to remember this brave new world is a work in progress, and it is early days. Many of the above issues transparency, volatility, data accuracy and regulation (or the lack thereof) also bedevil traditional finance as a matter of doing any investment business. And efforts are well underway for solutions to the above problems. For example, the ongoing consolidation and harmonization of ESG data by the Values Reporting Foundation aims to answer questions about the data that is needed for digitized investing to work properly.

DevvESG, a company represented on the panel, was defined as "a verifiable source of truth for ESG data and tokens" by Belem Tamayo, director of international partnerships for parent company, Devvio. Its approach, called the AIR methodology, offers ESG "better" in baseline analysis, guidance, tools and data through an open platform, according to the companys marketing materials.

Credible data, open platforms, democratization these are qualities that lend themselves particularly to green finance values across its various products and goals. If crypto is to serve as the foundational currency of FutureFi, then its issues must be addressed so that these aspects can effectively drive innovation, allowing the many varieties of green investment products and services based on crypto to flourish to their full potential.

Here's the thing: This paradigm-shifting investment disruption is well under way. The enthusiasm, smarts and drive to push it forward by a young generation of financial professionals that I saw at GreenFin 22 gave a big clue as to what will drive its eventual success. I dont doubt the speed bumps in its developmental phase will be flattened out. Prep yourself for a learning curve while catching up with FutureFi, now in progress.

[Interested in more coverage of GreenFin 22? Read morehere.]

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'FutureFi': Crypto is transforming the green finance universe | Greenbiz - GreenBiz

Philippine Regulator Warns the Public of Engaging With Foreign Crypto Service Providers Regulation Bitcoin News – Bitcoin News

The central bank of the Philippines, the primary regulator of the countrys crypto sector, has warned investors about engaging with unregistered and foreign crypto service providers. They may present additional challenges on enforcing legal recourse and consumer protection and redress mechanisms for local customers, among others, the regulator said.

The central bank of the Philippines, Bangko Sentral ng Pilipinas (BSP), issued a public warning Tuesday regarding unregistered and foreign crypto service providers. In the Philippines, the central bank is the primary regulator of the crypto sector.

The announcement states:

The Bangko Sentral ng Pilipinas (Bangko Sentral) strongly urges the public not to deal with virtual asset service providers (VASPs) that are either unregistered or domiciled abroad.

The central banks website shows that 19 VASPs have been registered as of June.

Besides the risk from price volatility associated with virtual assets (VAs), the central bank explained that VASPs that are based abroad may present additional challenges on enforcing legal recourse and consumer protection and redress mechanisms for local customers, among others.

The Bangko Sentral emphasized:

VA dealings are generally considered as high-risk activities which may result in huge financial losses due to price swings.

Furthermore, the central bank warned that the government does not guarantee protection against financial losses stemming from crypto price fluctuations. The public should exercise caution, conduct their own due diligence, and always be mindful of the risks prior to engaging with VA-related activities, the regulator emphasized.

Bangko Sentral ng Pilipinas has urged the public to immediately report unlawful activities facilitated through cryptocurrencies and/or crypto service providers to the central bank.

Last week, the central bank announced that it will stop accepting new VASP license applications for three years, starting Sept. 1. The regulator explained that it aims to strike a balance between promoting innovation in the financial sector and ensuring that associated risks remain within manageable levels.

What do you think about the Philippine central banks warnings? Let us know in the comments section below.

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Philippine Regulator Warns the Public of Engaging With Foreign Crypto Service Providers Regulation Bitcoin News - Bitcoin News

What Is Cryptography: Definition and Common Cryptography Techniques

What Is Cryptography?

The parameters that define data compilation, storage, and transport are constantly expanding in the digital age. While this growth adds convenience and efficiency to our lives, it also provides additional avenues for data breaches and compromises to occur. This aspect of technology makes the concept of cryptography more important than ever, and it also makes it an exciting field for students to consider. It is important for individuals to be able to answer the question of what is cryptography before pursuing a position in the field.

As the use of tech-centric data storage and transport increases in the corporate world, the need for qualified cryptographers will likely grow. The US Bureau of Labor Statistics (BLS) projects a 28 percent job growth in the information security field between 2016 and 2026, a figure thats significantly higher than the 7 percent job growth BLS predicts for the average profession.

Earning an advanced degree, such as a Master of Professional Studies in Cybersecurity Management, can help students to stand out in an increasingly competitive field. The degree can demonstrate to prospective employers that job candidates have a deep knowledge of the fundamental concepts and techniques that govern cryptography. As such, it can also function as one of the first steps toward a satisfying career in a thriving and critical industry.

Cryptography is the use of coding to secure computer networks, online systems, and digital data. It is a concept whose endgame is to keep vital information that is subject to potential data breaches safe and confidential. While the term tends to be associated with the modern digital era, the concept has played a significant role for centuries in military and government operations. For example, the Navajo code talkers from World War II, who communicated in their native tongue, deployed cryptography tactics to convey crucial data.

The primary element behind cryptography is the creation of ciphers. Ciphers are written codes that disguise key information to entities that arent authorized for access. The stronger the cipher, the more effective the security.

In the modern business era, cryptographers use a host of tech-driven techniques to protect data used by the private and public sectors, from credit card information to medical records. While these techniques differ in approach, they collectively carry the same goal of keeping data secure.

The primary technique behind the concept of cryptography is a process known as encryption. Encryption deploys algorithm strategies to rearrange vital information. Only those who have a bit of code known as a key can unlock the information and access the data in a non-scrambled form.

Also known as Rijndael, the Advanced Encryption Standard (AES) is an encryption technique that uses block ciphers, or algorithms that apply data encryption in measured blocks that match the plain text entered. For instance, if a piece of text or data is 144 characters, the block cipher would also be 144 characters.

AES provides the backbone of several security tactics that tend to go by names familiar to the public sector. Compression tools, such as WinZip, use AES, as do virtual private networks (VPNs). Even peer-to-peer messaging apps, such as Facebook Messenger, use AES to keep their data secure.

One of the encryption keys used in cryptography is private key encryption, which uses one bit of code to access data. Since this form of encryption entails only one key, it tends to be efficient to use; however, its efficiency also increases the importance of protecting the key from leaks.

Public key encryption is more complex than private key encryption because it uses two types of keys to grant access. The first key is public, which is distributed and shared to everyone. The second key is private, which is always withheld from the public. Sometimes, this private key can be referred to as a digital signature.

A hash function converts data into a string of letters and numbers. This string, which is produced in a uniform length, can be referred to by many names, including hash value, digital fingerprint, and checksum. The code produced on a piece of data is like a snowflake no two codes should be identical. Identifying these codes can help cryptographers confirm correct data, and it can also help them spot potential attacks posing as trusted programs or data.

Any business that deals with private information can view cryptography as a necessary tool for its organization. The techniques that cryptographers utilize can ensure the confidential transfer of private data. Techniques relating to digital signatures can prevent imposters from intercepting corporate data, while companies can use hash function techniques to maintain the integrity of data. Collectively, these benefits allow companies to conduct business in the digital era with complete confidence.

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What Is Cryptography: Definition and Common Cryptography Techniques

What is Cryptography? – Kaspersky

Cryptography is the study of secure communications techniques that allow only the sender and intended recipient of a message to view its contents. The term is derived from the Greek word kryptos, which means hidden. It is closely associated to encryption, which is the act of scrambling ordinary text into what's known as ciphertext and then back again upon arrival. In addition, cryptography also covers the obfuscation of information in images using techniques such as microdots or merging. Ancient Egyptians were known to use these methods in complex hieroglyphics, and Roman Emperor Julius Caesar is credited with using one of the first modern ciphers.

When transmitting electronic data, the most common use of cryptography is to encrypt and decrypt email and other plain-text messages. The simplest method uses the symmetric or "secret key" system. Here, data is encrypted using a secret key, and then both the encoded message and secret key are sent to the recipient for decryption. The problem? If the message is intercepted, a third party has everything they need to decrypt and read the message. To address this issue, cryptologists devised the asymmetric or "public key" system. In this case, every user has two keys: one public and one private. Senders request the public key of their intended recipient, encrypt the message and send it along. When the message arrives, only the recipient's private key will decode it meaning theft is of no use without the corresponding private key.

Users should always encrypt any messages they send, ideally using a form of public key encryption. It's also a good idea to encrypt critical or sensitive files anything from sets of family photos to company data like personnel records or accounting history. Look for a security solution that includes strong cryptography algorithms along with an easy-to-use interface. This helps ensure the regular use of encryption functions and prevents data loss even if a mobile device, hard drive or storage medium falls into the wrong hands.

Cryptography is the study of secure communications techniques that allow only the sender and intended recipient of a message to view its contents. The term is derived from the Greek word kryptos, which means hidden.

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What is Cryptography? Types of Algorithms & How Does It Work?

With the growing worry of losing ones privacy. The safety of consumers is at an all-time high. Technology has made our lives so much easier whilestill delivering a basic measure of assurance for our personal information. It is critical to learn how to protect our data and stay up with the emerging technology.

Lets have a look at the topics that will be discussed in this blog.

Before going any further, have a look at this video, in which our Cybersecurity specialists go over every detail of the technology.

Cryptography is the study of encrypting and decrypting data to prevent unauthorized access. The ciphertext should be known by both the sender and the recipient. With the advancement of modern data security, we can now change our data such that only the intended recipient can understand it.

Cryptography allows for the secure transmission of digital data between willing parties. It is used to safeguard company secrets, secure classified information, and sensitive information from fraudulent activity, among other things. Crypto means hidden and graph means writing.

Encryption is a fundamental component of cryptography, as it jumbles up data using various algorithms. Data encryption is the method of undoing the work done by encrypting data so that it can be read again. Cryptography is dependent on both of these methods.

In cryptography, a plaintext message is converted to ciphertext when using a technique, or a combination of numerical computations, that appear incomprehensible to the untrained eye.

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Cryptography is classified into two categories based on the types of keys and encryption algorithms:

Lets take a closer look at each type.

Also known as Secret Key Cryptography, private key encryption encrypts data using a single key that only the sender and receiver know. The secret key must be known by both the sender and the receiver, but should not be sent across the channel; however, if the hacker obtains the key, deciphering the message will be easier. When the sender and the receiver meet on the handset, the key should be addressed. Although this is not an ideal method. Because the key remains the same, it is simpler to deliver a message to a certain receiver. The data encryption framework (DES Algorithm) is the most widely used symmetric key system.

For instance, Tom is sending a message to Mary that he does not want anyone else to see. Hed like to encrypt his message. That is simply because Tom and Mary exchange the same key. They will use the same key for encrypting and decrypting. Heres how it works: First, Tom encrypts his signal with his key. His message has now been encrypted and scrambled. It cant be read by anyone. When Mary receives the encrypted message, she decrypts it with the same key so she can read it in plaintext.

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Asymmetric key cryptography, also known as public-key cryptography, consists of two keys, a private key, which is used by the receiver, and a public key, which is announced to the public. Two different keys are used in this method to encrypt and decrypt the data. These two distinct keys are mathematically linked. They are sold in pairs. The public key is accessible to anyone, whereas the private key is only accessible to the person who generates these two keys.

For example, Bob wants to send an encrypted message to Alice, and they agree to encrypt his message using public-key encryption. The receiver initiates public key encryption to encrypt the senders message. The receiver, not the sender, initiates the public key method to encrypt the senders message. Everyone has access to the public key. The receiver, Alice, is the only one who has access to the private key. The following is how it works:

Step 1: Alice generates two keys: one public and one private. Alice stores the public key on a public key server that anyone can access.

Step 2: Alice informs Bob of the location of her public key.

Step 3: Bob obtains Alices public key by following Alices instructions.

Step 4: Bob composes a message and encrypts it with Alices public key. Bob sends Alice the encrypted message via the network.

Step 5: Alice decrypts Bobs message using her private key.

Although Alices private key can confirm that no one read or changed the document while it was in transit, it cannot confirm the sender. Because Alices public key is available to the public, anyone can use it to encrypt his document and send it to Alice while posing as Bob. The digital signature is another technique that is required to prove the sender.

A digital signature is equivalent to a handwritten signature. It is an electronic verification of the sender. Digital signatures are commonly used for software distribution, financial transactions. The digital signature serves three purposes:

Lets look at an example of cryptography to see what it is:

Samuel wishes to communicate with his colleague Yary, who is currently residing in another country. The message contains trade secrets that should not be accessed or seen by any third party. He sends the message via a public platform such as Skype or WhatsApp. The foremost aim is to create a secure connection.

Assume Evy, a hacker who has obtained access to the message. Evy can now change or corrupt the message before it reaches Yary. Evy alters the message that Yary receives. Neither Samuel nor Yary are aware of the underground work. The outcomes are dreadful.

Now, cryptography can help. It can aid in the security of the connection between Samuel and Yary.

Now that we understand what cryptography is, let us learn how cryptography aids in the security of messages.

Samuel first converts a readable message or Plain text into a series of digits using various cryptographic algorithms to protect the message. He then encrypts the message with a key. The ciphertext is a term used in cryptography. Samuel uses the internet to send an encrypted message to Yary. If Evy gains access to it and modifies the message before it reaches Yary. Yary now requires a key to decrypt Samuels message. The message can be converted from cipher text to plain text using the decryption key.

Because Evy altered the plain text, the result of the decryption will be the original plain text as an error.

The error indicates that the message has been changed and is no longer the original message. As a result, encryption is critical for secure communication.

Plain text is simply a human-readable message, text, or information.

Cipher text- It is the output of the input plain text that gets converted after the encryption process. Basically, Cipher text is a type of plain text that is unreadable.

The history of cryptography finds its roots in Egypt around 4000 years ago. The Egyptians used hieroglyphics, the oldest cryptography technique, to communicate with each other. Later, in 500 BC, the technique was modified by replacing the characters with alphabets based on some secret rule known to only a few. This rule came to be known as the key to decipher hidden codes or messages.

Later, in the 15th century, more sophisticated techniques evolved such as Vigenere cipher and coding machines like the Enigma rotor machine. Years later, cryptography was born!

The functioning of cryptography revolves around cryptographic algorithms. Cryptographic algorithms or ciphers are mathematical functions that are combined with keys, such as phrase, digit, word, etc., to encrypt text. The effectiveness depends on the strength of the cryptographic algorithms and the secrecy level of the key.

Multiple complex combinations of algorithms and keys boost the effectiveness of a cryptosystem.

Some major techniques of Cryptography are listed below:

Also, look into our blog on Hill Cipher and learn more about cipher!

Cryptography algorithms are the means of altering data from a readable form to a protected form and back to the readable form. Cryptographic algorithms are used for important tasks such as data encryption, authentication, and digital signatures.

RSA is an asymmetric cryptographic algorithm. RSA Algorithm that works on a block cipher concept that converts plain text into ciphertext and vice versa at the receiver side. If the public key of User A is used for encryption, we have to use the private key of the same user for decryption.

Step 1: Select two prime numbers p and q where p not equal to q.

Step 2: Calculate n= p*q and z=(p-1)*(q-1)

Step 3: Choose number e: Such that e is less than n, which has no common factor (other than one) with z.

Step 4: Find number d: such that (ed-1) is exactly divisible by 2.

Step 5: Keys are generated using n, d, and e

Step 6: Encryption

c=m pow(e) mod n

(where m is plain text and c is ciphertext)

Step 7: Decryption

m= c pow(d) mod n

Step 8: Public key is shared and the private key is hidden.

Note: (e, n) is the public key used for encryption. (d, n) is the private key used for decryption

The RSA algorithm has the drawback of being quite inefficient in cases in which large volumes of data must be authenticated by the same virtual machine. A foreign entity must substantiate the dependability of authentication tokens. Data is routed through middlemen, who may corrupt with the cryptosystem.

Data Encryption Standard is a symmetric cipher algorithm and uses the block cipher method for encryption and decryption. DES is the landmark in cryptographic algorithms. It works based on Fiesta Cipher Structure.

DES operates on a plaintext block of 64 bits and returns ciphertext of the same size.

Step 1: Sub-key Generation

Step 2: Encryption

Preparing for an Ethical Hacking job interview? Have a look at our blog on ethical hacking interview questions and start preparing!

Advantages of Cryptography

Disadvantages of Cryptography

There are two types of cryptography attacks, passive and active attacks.

In a passive attack, the intruder can only see the private data but can hardly make any changes to it or alter it. Passive attacks are more dangerous because the intruder only sees the message without altering it. Then no one will ever know that an attack is taking place, and their hidden messages will no longer be hidden.

In this type of attack, the intruder can alter the private data.

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Cybersecurity has continued to evolve into one of the most innovative technologies. Both Cybersecurity and cryptography are interrelated.

Cryptography is now being used to hold confidential data, including private passwords, secure online. It is now used by cybersecurity experts to foster innovation, ciphertext, as well as other protective measures that enforce but also insulate business and personal info.

With the growing worry of losing ones privacy. The safety of consumers is at an all-time high. Cryptography is the study of encrypting and decrypting data to prevent unauthorized access. The ciphertext should be known by both the sender and the recipient.

Cybersecurity has continued to evolve into one of the most innovative technologies.

At these significant stages, cryptography comes to the rescue. Having a solid foundation in cryptography basics allows us to secure our confidential data.

Whether youd like to gain knowledge on cybersecurity for your personal use or your new career, you can sign up for a beginner lesson to provide you with a fundamental insight into the prevailing scene of data security.

Please leave all your cybersecurity issues in the Intellipaat Cybersecurity community.

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What is Cryptography? Types of Algorithms & How Does It Work?

Protect your privacy with cybersecurity and cryptography – Geeky Gadgets

If you would like to learn more about how to protect yourself or teach your students how to stay safe online. You might be interested know that the recent Hello World magazine created by the team over at the Raspberry Pi Foundation features articles on security issues and the ethics and legalities of hacking, advice about teaching cybersecurity to primary-school children, and an introduction to quantum cryptography.

Other articles and features within the Hello World Issue 18 digital magazine which is now available to download for free include using computational methods to analyze literature, developing computational thinking skills through Japanese logic puzzles, top tips for representing computing at school open days.

We also share some fantastic ideas for making this topic as hands-on as possible, including through using network robots, using tools and techniques used by real-life penetration testers, and by taking part in a capture the flag competition. https://www.raspberrypi.org/blog/classroom-activity-machine-learning-accuracy-ethics-hello-world-18/

For the worried, there is absolutely no coding involved in this resource; the machine behind the portal does the hard work for you. For my Year 9 classes (students aged 13 to 14) undertaking a short, three-week module, this was ideal. The coding is important, but was not my focus. For this module, Im more concerned with the fuzzy end of AI, including how credible AI decisions are, and the elephant-in-the-room aspect of bias and potential for harm.

Source : RPiF

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Protect your privacy with cybersecurity and cryptography - Geeky Gadgets

Former Google CEO: Bitcoin is a remarkable achievement of cryptography – The Cryptonomist

The famous 2014 statement by former Google CEO Eric Schmidt, Bitcoin is a remarkable achievement of cryptography, has resurfaced on the web.

It was 2014, when Eric Schmidt, former CEO and chairman of Google, had made his comments about Bitcoin during his speech at the Computer History Museum, and right now, the video clip is again circulating the web.

Former Google CEO and chairman Eric Schmidt says Bitcoin is a remarkable cryptographic achievement.

Among other statements, Schmidt emphasized his interest in the architecture and design behind Bitcoin.

Not only that, Schmidt also gave a future perspective, stating that in his opinion BTC is an amazing advancement. Lots of people will build businesses on top of that.

Schmidt is an American businessman and software engineer who served as CEO of Google from 2001 to 2011 and oversaw one of the companys most significant growth phases. He remained as executive chairman until 2017 and as a technical advisor until 2020. Schmidt currently has a net worth of $20 billion, making him the 70th richest person in the world, according to Forbes.

Schmidt had stated during April of this year, that he was a crypto-investor although he would highlight how his interest was more dedicated to blockchain and Web3, rather than virtual currencies.

Schmidt reportedly did not name any specific cryptocurrency he currently owns, emphasizing only that he just started investing in cryptocurrencies.

Being more interested in Web3, Schmidt had described it as follows:

A new model [of the internet] where you as an individual [can] control your identity, and where you dont have a centralized manager, is very powerful. Its very seductive and its very decentralized. I remember that feeling when I was 25 that decentralized would be everything.

Since leaving Google, Schmidt has devoted most of his time to philanthropic endeavors through his Schmidt Futures initiative, where he funds basic research in fields such as artificial intelligence, biology and energy.

Apparently, despite his favorable stance on Bitcoin and cryptocurrencies with the prospect of decentralization and the Web3, Schmidt appears to be opposed to the metaverse.

During the Aspen Ideas Festival event in Colorado, the former Google CEO expressed all his scepticism towards metaverse and Facebook, which since October 2021 is called Meta precisely to highlight its position in this regard.

Essentially, Schmidt says there is currently no clear definition of the concept of metaverse and how it will affect peoples lives.

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Former Google CEO: Bitcoin is a remarkable achievement of cryptography - The Cryptonomist

Saving Private Keys From The Courts – Bitcoin Magazine

This is an opinion editorial by Christopher Allen, founder and executive director of the Blockchain Commons.

*Quotes from this article stem from sources here and here.

Increasingly, attorneys in the United States are asking courts to force the disclosure of cryptographic private keys as part of discovery or other pre-trial motions, and increasingly courts are acceding to those demands.

Though this is a relatively recent phenomenon, its part of a larger problem of law enforcement seeking back doors to cryptography that goes back at least to the U.S. governments failed introduction of the Clipper Chip in 1993.

Unfortunately, todays attacks on private keys in the courtroom have been more successful, creating an existential threat to digital assets, data and other information protected by digital keys. That danger arises from a fundamental disconnect between this practice and the realities of technologies that leverage public-key cryptography for security: private-key disclosure can cause irreparable harm, including the loss of funds and the distortion of digital identities.

As a result, we need to support legislation that will protect digital keys while allowing courts to access information and assets in a way that better recognizes those realities. The private-key disclosure law currently being considered in Wyoming is an excellent example of the sort of legislation that we could put forth and advocate for in order to maintain the proper protection for our digital assets and identities.

Wyoming Senate Filing 2021-0105

No person shall be compelled to produce a private key or make a private key known to any other person in any civil, administrative, legislative or other proceeding in this state that relates to a digital asset, other interest or right to which the private key provides access unless a public key is unavailable or unable to disclose the requisite information with respect to the digital asset, other interest or right. This paragraph shall not be interpreted to prohibit any lawful proceeding that compels a person to produce or disclose a digital asset, other interest or right to which a private key provides access, or to disclose information about the digital asset, other interest or right, provided that the proceeding does not require production or disclosure of the private key.

The forced disclosure of private keys is deeply harmful because it fundamentally runs at odds with how private keys work. Attorneys (and courts) are usually trying to force the disclosure of information or (later) the relinquishment of assets, but theyre treating private keys just like theyre physical keys that they can demand, use and give back.

Private keys do not match any of these realities. As Wyoming State Legislature Senate Minority Leader Chris Rothfuss says:

"There is no perfect analog for a modern cryptographic private key in existing statute or case law; it is unique in its form and function. As we build a policy framework around digital assets, it is essential that we appropriately recognize and reflect the characteristics of the underlying public / private key and cryptographic technologies. Without clear, unambiguous legal protection for the sanctity of the private key, it is impossible to ensure the integrity of the associated digital assets, information, smart contracts and identities.

That appropriation recognition and reflection requires us to understand that:

1. Private keys are not assets.

Private keys are fundamentally the way we exert authority in the digital space, an interface between our physical reality and the digital reality. They may give us the ability to control a digital asset: to store it, to send it or to use it. Similarly, they may give us the ability to decrypt protected data or to verify a digital identity. However, they are not the assets, the data nor the identity themselves.

Its the obvious difference between your car and your electronic key fob. The one is an asset, while the other lets you control that asset.

As Jon Callas, Director of Technology Projects at the Electronic Frontier Foundation (EFF), says:

They don't even want the key, they want the data; asking for the key is like asking for the filing cabinet rather than the file.

2. Private keys are not the proper tool for discovery.

Treating private keys as a tool to ensure the discovery of information fundamentally misunderstands their purpose. Private keys are not how we see something in digital space, but instead how we exert authority in digital space!

Turning back to comparisons, its the difference between a ledger and a pen. If you wanted accounting information, youd ask for the ledger; you wouldnt ask for the pen especially not if it was a pen that allowed you to write undetectably in the handwriting of the accountant!

Former federal prosecutor Mary Beth Buchanan, when offering testimony in favor of Wyomings private-key disclosure law, said:

The court could order a disclosure or an accounting of all the digital assets that are held, and then those assets could be disclosed and the location of whether they are held across different platforms or even different wallets. But giving the key is actually giving access to those assets. That is the difference.

Fortunately, there is an electronic tool that meets the needs of discovery: public keys.

Wyoming has recognized that in their legislation, which says that a private key should never be required if a public key would do the job (and they parenthetically noted at hearings that their current understanding is that a public key will always do the job). If our concern is revealing information that will help to catch and prosecute criminals, then public keys are the answer.

3. Private keys are not physical.

Electronic private keys and physical keys are very different. A physical key could pass through many hands and there could be the expectation that it was very likely not duplicated (especially if it were a special key, such as a safe-deposit box key), and that when the key was returned to the original holder, they would once again have control of all of the linked assets. The same is not true for a private key, which could be easily duplicated by any of the many hands it passed through, with no way to ascertain that that had happened.

Returning to the example of a cars key fob, it would not be appropriate to force the disclosure of the unique serial number stored within a car fob for the same reason its not appropriate to force the disclosure of a private key. Doing so would give anyone who gets that serial number the ability to create a new fob and steal your car!

4. Private keys serve many purposes.

Finally, private keys are likely to have a lot more purposes than physical keys, especially if a court decides to go after not just a specific private key, but the root key from an HD wallet or a seed phrase. Root keys (and seeds) might be used to protect a wide variety of assets as well as private data. They may also be used to control identities and to offer irrefutable proof that the owner agreed to something through digital signatures.

The authoritative uses of private keys are so wide and all-encompassing that its hard to come up with a physical equivalent. The closest analogy, which I explained at one of the Wyoming hearings, is that this would be like if a court demanded access to a hotel room by requiring the hotels master key, which can provide access to all rooms. But, a private key is more than that; it would be as if the court also required that someone with signatory powers at the hotel sign a bunch of blank contracts and blank checks. The potential for harm with the disclosure of a private key is just that high for someone who is using it for a variety of purposes and there will be more and more people doing so as the importance of the digital world continues to increase.

Going beyond the fact that a private key is the wrong tool for courts and that its often being used in the wrong way, there are a number of other problematic realities related to the courts themselves and how and when theyre trying to access private keys.

5. Courts are not prepared to protect private keys.

To start with, courts dont have the experience needed to protect private keys. This danger is made worse by the fact that a single private key is likely to pass through the hands of many different court staff over time.

But, this isnt just about courts. The problem of creating safe ways to transfer private keys is far bigger. Its something that the cryptographic field as a whole does not have good answers for. I attested in Wyoming that the immense difficulties of transferring a private key are a risk that allows bearing of false witness. Putting courts, without cryptocurrency expertise, in the middle of the problem could be catastrophic.

Perhaps cryptographers will resolve these issues in time, and perhaps someday courts will be able to share in that expertise if they decide doing so is a good use of their time and resources, but we need to consider keys whose disclosures are being forced now.

6. Courts are requiring premature disclosure.

The current situation with key disclosure is even more problematic because its occurring as part of discovery or other pre-trial motions. Discovery rulings are almost impossible to appeal which means that in todays environment key holders have almost no recourse for protecting the token of their own authority in digital space.

7. Courts are more demanding of digital assets than physical assets.

We recognize that courts should be able to require the usage of a key. Compelling usage is nothing new, but the private key is not required for that; a simple court order is enough.

If someone refuses to use their private key in a way compelled by a court, thats nothing new either. The physical world already has plenty of examples of people refusing such orders, such as by hiding assets or just refusing to pay judgements. They are handled with sanctions such as contempt of court.

Asking for more from the electronic world is an overreach of traditional judgements that also creates much greater repercussions.

Using the wrong tool for the wrong reasons and putting it in hands not ready to deal with it will have calamitous results. Here are some of the most obvious repercussions.

1. Asset Theft.

Obviously, there is a danger of the assets being stolen, as a private key gives total control over those assets. These assets could go far beyond the specifics of what a court is interested in because of the multitude of uses for keys.

2. Asset Loss.

Beyond the problem of purposeful theft, keys could be lost, and with them digital assets. Former federal prosecutor Mary Beth Buchanan raised this concern in her testimony, saying:

"Evidence is lost all the time."

If that evidence was a private key, which might hold a variety of assets, information, and proofs of identity, the loss could be tremendous.

3. Collateral Damage.

Thefts or losses resulting from the disclosure of a private key could also go far beyond an individual before the court. Increasingly, assets are being held in multisignatures, which may grant multiple people control over the same assets. By requiring the disclosure of a key, a court could negatively impact people entirely unrelated to the proceedings.

4. Identity Theft.

Because private keys might also protect the identifier for digital identity, their loss, theft or misuse could put someones entire digital life at risk. If a key was copied, someone else could pretend to be the holder and even make digital signatures that are legally binding for them.

Protecting private keys is one of the most important things that Blockchain Commons has ever worked on. As I said:

"I find the protections of this Private Key Disclosure bill crucial for the future of digital rights."

Wyoming State Legislature Senate Minority Leader Chris Rothfuss affirmed this, adding:

Christopher Allen has been an invaluable member of our blockchain policy community, bringing a lifetime of technical expertise to advise our committee work and inform our legislative drafting. Mr. Allen has emphasized the particular importance of protecting private keys from any form of compulsory disclosure.

We need your help to make it a reality.

If youre an experienced member of the cryptocurrency or digital asset field or a human rights activist, please submit your own testimony in support of the Wyoming Select Committee on Blockchain, Financial Technology and Digital Innovation Technology. The bill will be coming up for further discussion on September 19-20 in Laramie, Wyoming.

But, Wyoming is just the start. They are doing an excellent job of leading the way, but we need other states and countries to follow. If you have connections to another legislature, please suggest they introduce legislation with similar language to Wyomings bill.

Even if you dont feel comfortable talking with a legislature, you can help by advocating for the protection of private keys as something different than assets.

Ultimately, our new world of digital assets and digital information will succeed or fail based upon how we lay its foundations today. It could become a safe space for us or a dangerous Wild West.

Properly protecting private keys (and using public keys and other tools for legitimate judicial needs) is a keystone that will help us to build a sturdy edifice.

This is a guest post by Christopher Allen. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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Saving Private Keys From The Courts - Bitcoin Magazine

NTT Research and NTT Corporation Engage in Breakthrough Research at Crypto 2022 – Business Wire

SUNNYVALE, Calif.--(BUSINESS WIRE)--NTT Research, Inc., a division of NTT (TYO:9432), today announced that members of its Cryptography & Information Security (CIS) Lab authored or co-authored 17 papers that are being delivered at Crypto 2022, one of the leading international conferences on cryptologic research. A paper co-authored by CIS Lab Director Brent Waters won the events Best Paper Award, his second such award in the past three years. In addition, NTT Corporation and NTT Social Informatics Laboratories contributed another six papers. Organized by the International Association for Cryptologic Research (IACR), this years hybrid event will take place in Santa Barbara, August 13-18. NTT Research is one of the conferences eight gold-level sponsors.

The Crypto 2022 program committee, comprised of more than 70 experts, accepted nearly 100 submissions this year. According to the posted conference program, the 23 papers associated with CIS Lab and other NTT cryptographers will be presented in sessions with the following topics: coding theory, distributed algorithms, idealized models, lattice-based signatures, lattice-based zero knowledge, lower bounds, post-quantum cryptography, quantum cryptography, secret sharing, secure hash functions, secure messaging and secure multiparty computation. Dr. Waters will present his paper, titled Batch Arguments for NP and More from Standard Bilinear Group Assumptions on Tuesday, August 16, at 11:20 (PST) during a session that acknowledges it with the conferences only Best Paper award this year. Two best early career researcher papers will also be recognized. Dr. Waters, who is also a professor of computer science at the University of Texas (UT) at Austin, was named CIS Lab Director in June, succeeding Dr. Tatsuaki Okamoto. At Crypto 2020, a paper co-authored by Dr. Waters won one of three Best Paper Awards given that year. (One of the other winners was co-authored by a senior researcher at NTT Secure Platforms Labs.) Dr. Waters collaborator in this years paper is Dr. David Wu, an assistant professor at UT Austin. Their breakthrough is to show how to batch the proofs of nondeterministic polynomial (NP)-class and other problems using standard assumptions and relatively non-complex techniques.

It is exciting to see our CIS Lab and other parts of NTT engaged in so much cutting-edge research, NTT Research President and CEO Kazuhiro Gomi said. Congratulations to Brent Waters and David Wu for their Best Paper Award, and the research itself, which appears to have such timely applications. Best wishes to all for a very productive conference.

The Waters-Wu paper introduces a new kind of proof system, which in cryptography consists of a proving party and a verifying party, where the prover is trying to convince the verifier of a statement. Typically, the verifier relies on the prover to provide a witness. An example might be a digital signature, acting as a witness to the statement that a software update is not malware, but in fact produced by the vendor. In this paper, the authors develop techniques that allow for efficiently batching the transmission and verification of several statements. In so doing, they improve upon what Dr. Waters said are two main lines of prior work in this direction, namely: one that uses less standard and thus more risky computational assumptions for security; and the other, which uses certain types of lattice assumptions and probabilistic checkable proofs.

In this work we show that batchable proof systems can be achieved from standard and well-studied assumptions on bilinear groups, Dr. Waters said. Moreover, our techniques are very direct and show that complex probabilistic checkable proofs are not needed.

Two potential use cases involve the aggregation of signatures and the delegation of computation to cloud services. The first case relates to applications such as blockchains, in which each update consists of several signatures representing various transactions that users want to have processed. Instead of simply including all signatures from the transaction as part of an update (the default solution, which can incur a significant overhead), batchable verification enables aggregating these into one shorter object, the size of which is independent of the number of signatures included. The second case involves the increasingly large amounts of information storage and processing being done via cloud services.

The problem of delegation asks, how can I verify that a computation was performed correctly in a more efficient manner than simply performing it myself, Waters said. Our work on batch argument systems can be immediately applied to tackle that problem.

The proceedings of the IACRs flagship conferences, which draw the worlds leading cryptographers, are published by Springer in its Lecture Notes in Computer Science series. Dr. Yehuda Lindell, CEO and co-founder of Unbound Security, is scheduled to deliver this years invited talk. To attend, see this registration page.

About NTT Research

NTT Research opened its offices in July 2019 as a new Silicon Valley startup to conduct basic research and advance technologies that promote positive change for humankind. Currently, three labs are housed at NTT Research facilities in Sunnyvale: the Physics and Informatics (PHI) Lab, the Cryptography and Information Security (CIS) Lab, and the Medical and Health Informatics (MEI) Lab. The organization aims to upgrade reality in three areas: 1) quantum information, neuroscience and photonics; 2) cryptographic and information security; and 3) medical and health informatics. NTT Research is part of NTT, a global technology and business solutions provider with an annual R&D budget of $3.6 billion.

NTT and the NTT logo are registered trademarks or trademarks of NIPPON TELEGRAPH AND TELEPHONE CORPORATION and/or its affiliates. All other referenced product names are trademarks of their respective owners. 2022 NIPPON TELEGRAPH AND TELEPHONE CORPORATION

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NTT Research and NTT Corporation Engage in Breakthrough Research at Crypto 2022 - Business Wire