What Is Cryptography?
Cryptography involves using mathematical techniques to ensure data security. In Bitcoin's context, cryptography safeguards funds and ensures the integrity of blockchain data. Bitcoin employs several cryptographic methods, including public key cryptography, allowing users to generate unique keys and transact without intermediaries. This ensures that Bitcoin remains permissionless and trustless. Users can be confident that their public keys cannot be exploited for unauthorized withdrawals when transacting. This differentiates Bitcoin from conventional systems, where sharing financial details can make one vulnerable to unauthorized charges. Bitcoin also uses hash functions to preserve the blockchain's immutability. By including the hash of a preceding block within the current one, any alterations made in past blocks would invalidate subsequent blocks, ensuring data consistency. This mechanism and decentralized mining practices fortify Bitcoin against tampering and central control.