Cryptography: From Secret Languages to Blockchain – Tools for Protecting Digital Assets

Why Do You Need to Understand Cryptography Starting Today?

Every day, you trust cryptography without even realizing it. When logging into your bank account, receiving messages via Signal or WhatsApp, or making online payments – all are protected by complex mathematical algorithms. But how do these actually work? And why are they important to you – especially if you care about digital assets?

In today’s world, cryptography is not just a tool for scientists – it has become the foundation of the digital economy. From secure e-commerce, cryptocurrency transactions on exchanges like Gate.io, to protecting sensitive government information – cryptography is the silent guardian.

What Is Cryptography? A Simple Definition

Imagine you want to send a secret letter to a friend. Instead of writing in plain text, you can replace each letter with the next one in the alphabet. This may seem silly, but it’s actually the first principle of cryptography.

Scientifically, cryptography (comes from Greek kryptos – hidden, grapho – write), and is the science of methods for protecting information by transforming it into an unreadable format without a secret key.

The Four Core Objectives of Cryptography

• Confidentiality: Only authorized persons can read the information
• Data Integrity: Ensuring data is not altered during transmission
• Authentication: Verifying the sender’s identity – not impersonators
• Non-repudiation: The sender cannot deny having sent the message later

Cryptography vs. Encryption – The Difference

Many confuse these two concepts, but they are not the same:

Encryption is the process of transforming readable information into an encoded format using specific algorithms and keys.

Cryptography is a broader scientific field that includes:

• Developing encryption algorithms
• Decrypting (breaking encryption)
• Developing secure protocols (TLS/SSL)
• Managing cryptographic keys
• Hash functions (creating “digital fingerprints”)
• Digital signatures

In other words: encryption is a tool, while cryptography is an entire scientific discipline.

The History of Cryptography: From Scytale to Blockchain

Ancient Times: The Early Steps

Ancient Egyptians (around 1900 BC) used non-standard symbols to hide information. But in Ancient Sparta (5th century BC), they developed a smarter device: scytale – a rod of specific diameter. Wrapping a strip of leather or paper around the rod, writing along its length, then unwrapping reveals a jumble of letters. Only someone with the rod of the same diameter can read it.

From Ancient to Medieval Times: Transposition Ciphers

Caesar cipher (1st century BC) was a step forward – shifting each letter by a fixed number of positions. Simple but widely used. By the 9th century AD, Arab scholars like Al-Kindi discovered frequency analysis – a method to break shift ciphers by counting the most common letters.

To counter this, Europe developed Vigenère cipher (16th century) – using a keyword to determine different shifts at each position. It was considered “unbreakable” at the time.

20th Century: Machines and Computers

World War I accelerated the development of more complex ciphers. The most famous event: the Zimmermann telegram was decrypted by British codebreakers, influencing the US decision to enter the war.

In World War II, Germany’s Enigma machine was considered unbreakable – until Alan Turing and Polish mathematicians at Bletchley Park cracked it. This was a historic turning point, giving the Allies an advantage.

Modern Era: Mathematics and Algorithms

In 1949, Claude Shannon published “A Mathematical Theory of Communication” – laying the mathematical foundation for modern cryptography.

The 1970s marked a breakthrough:

• DES (Data Encryption Standard) became the first global symmetric encryption standard
• 1976: Whitfield Diffie and Martin Hellman proposed public key cryptography – a revolutionary concept
• RSA (Rivest, Shamir, Adleman) appeared and remains widely used today

The Two Main Types of Encryption

Symmetric Encryption (Secret Key)

The same key is used for both encryption and decryption – like a regular key.

Advantages: High speed, ideal for large data

Disadvantages: Secure key transmission problem; if the key is intercepted, the entire system collapses

Examples: AES, DES, 3DES, Blowfish, GOST R 34.12-2015 (Kuznetschik, Magma)

Asymmetric Encryption (Public Key)

Uses a pair of mathematically related keys: a public key (anyone can use) and a private key (only you have).

Comparison: Like a public mailbox – anyone can drop mail encrypted with the public key (but only you with the private key) can open it.

Advantages: Solves key distribution problem; enables digital signatures

Disadvantages: Slower; not suitable for large data

Examples: RSA, ECC (Elliptic Curve Cryptography), Diffie-Hellman

( They Work Together

In practice, hybrid encryption is used: the public key is used to exchange a secret key, which is then used for fast encryption of large data blocks. This is how HTTPS/TLS works on the internet.

Hash Functions: The Digital Fingerprint of Data

Hash functions transform data of any length into a fixed-length string – like a “digital fingerprint”.

Key properties:

• One-way: Cannot recover original data from hash
• Deterministic: Same data always produces the same hash
• Collision-resistant: Nearly impossible to find two different data sets with the same hash
• Avalanche effect: Small data changes cause large hash changes

Applications:

• Data integrity verification )download file, check hash###
• Password storage (hash storage, not plain passwords)
• Digital signatures
• Blockchain (link blocks)

Algorithm examples: MD5 (obsolete), SHA-1 (obsolete), SHA-256, SHA-512 (popular), SHA-3, GOST R 34.11-2012 (Streebog – Russian standard)

Cryptography Surrounds Us Everywhere

( On the Internet

HTTPS – Secure Lock Icon

When you see the lock icon in the address bar, it means the connection is protected by TLS/SSL. Login credentials, passwords, credit card info are encrypted between your browser and the server.

Secure Messaging Apps

Signal, WhatsApp, Threema use end-to-end encryption )E2EE###. Messages are encrypted on your device and can only be decrypted on the recipient’s device. Even support staff cannot read them.

DNS over HTTPS (DoH) / DNS over TLS (DoT)

Encrypt DNS requests to hide the websites you visit from your internet provider.

( In Banking and Payments

Chip Card )EMV###

The chip uses encryption algorithms to authenticate the card with the reader and bank, preventing counterfeiting.

Online Banking

All transactions are protected by:

• TLS/SSL encryption
• Encrypted databases
• Multi-factor authentication (often including one-time passwords – OTP)

Cryptocurrency Transactions

Exchanges like Gate.io use advanced encryption methods to protect wallets, private keys, and user data. Blockchain itself relies on encryption: hash linking blocks, digital signatures authenticating transactions.

( Wi-Fi and VPN

WPA2/WPA3 encrypt Wi-Fi connections to prevent unauthorized access.

VPN )Virtual Private Network### encrypts all internet traffic to ensure anonymity on public networks.

( Digital Signatures

A cryptographic mechanism that allows you to verify authorship and integrity of an electronic document. How it works:

1. Create a hash of the document
2. Encrypt the hash with your private key
3. Recipient decrypts with your public key
4. If hashes match, the document is authenticated and unaltered

Applications: Submitting legal documents, tax reports, electronic contracts.

Cryptography in Russia: GOST and FSB

Russia has a long-standing tradition in encryption, originating from the Soviet Union’s mathematical schools.

) National Standards ###GOST###

GOST R 34.12-2015 – Symmetric block cipher standard:

• Kuznetschik (128 bit)
• Magma (64 bit)

GOST R 34.10-2012 – Digital signature standard on elliptic curves

GOST R 34.11-2012 – Hash function standard Streebog (256 or 512 bits)

Use of GOST is mandatory when:

• Protecting state information
• Handling classified information
• Interacting with government agencies (e.g., qualified digital signatures)

( Regulatory Bodies

FSB Russia )Federal Security Service### – Issues licenses, certifications, and approves encryption standards

FSTEC Russia – Regulates technical information security

( Domestic Development Companies

CryptoPro, InfoTeKS, Code of Security – specialize in developing cryptographic security solutions.

Cryptography Worldwide

) USA

NIST ###National Institute of Standards and Technology### – Standardizes algorithms used globally (DES, AES, SHA). Currently running a post-quantum standardization competition.

NSA (National Security Agency) – Involved in cryptography development; controversial influence on standards(.

) Europe

ENISA – Promotes cybersecurity standards.

GDPR – While not specifying algorithms, requires appropriate technical measures (encryption plays a key role).

China

Develops its own encryption standards (SM2, SM3, SM4) and invests heavily in post-quantum cryptography research.

Quantum Cryptography – The Future of Security

Quantum Computers will threaten most modern public key algorithms ###RSA, ECC(. Shor’s algorithm can break them in reasonable time.

) Two Development Directions

Post-Quantum Encryption (PQC)

Developing new algorithms resistant to quantum attacks. These are based on different mathematical problems ###matrices, codes, multivariate equations(. NIST is standardizing these.

Quantum Key Distribution )QKD(

Using quantum mechanics principles to protect keys. Quantum Key Distribution allows two parties to generate a shared secret key, any eavesdropping attempt changes the photon states and is detectable. This technology exists and is being deployed.

Cryptography vs. Steganography

These are two different techniques:

Cryptography – Makes content unreadable )encrypted(. Sending an encrypted message is still visible.

Steganography – Hides the existence of a secret message inside an innocuous object )images, audio, video(. No one knows there’s a message there.

Combination: First encrypt the message, then hide it – providing two layers of protection.

Careers in Cryptography and Security

The demand for cybersecurity and cryptography experts is growing rapidly.

) Job Roles

Cryptographer (Researcher)

• Develop new encryption algorithms
• Requires deep knowledge of mathematics (number theory, algebra, probability)

Cryptanalysis Expert

• Analyze and break encryption systems
• Work for defense agencies or security firms

Information Security Engineer

• Deploy protection systems, VPNs, PKI, key management
• Security monitoring

Secure Software Developer

• Know how to properly use cryptographic libraries
• Develop secure applications

Penetration Tester

• Find vulnerabilities in security systems

Essential Skills

• Strong mathematical knowledge
• Understanding of encryption algorithms
• Programming skills (Python, C++, Java)
• Knowledge of networks and operating systems
• Analytical thinking
• Continuous self-learning ability

( Education Sources

Universities: MIT, Stanford, ETH Zurich, EPFL, Technion

Online Platforms: Coursera, edX, Udacity

Practical Exercises: CryptoHack, CTF contests

) Career Outlook

• IT companies, Fintech, Telecom, government agencies, defense industry, consulting firms
• Growth path: From specialist → senior specialist → security architect
• Salary: Higher than average IT market
• Demand: Always high and continues to grow

Common Mistakes and How to Fix Them

“Encryption Error” What Is It?

A common message may appear when:

• Certificate expired
• Hardware encryption issues
• Browser not updated

How to fix:

1. Restart app/computer
2. Check certificate expiration date
3. Update hardware, browser, OS
4. Try a different browser
5. Contact support

( What Is an Encryption Module?

Hardware or software device designed to perform encryption activities: encrypt, decrypt, generate keys, hash, create digital signatures.

) Beginner’s Guide to Learning Cryptography

1. Study history: Caesar cipher, Vigenère cipher
2. Solve exercises: CryptoHack, CTF challenges
3. Read popular books: “The Code Book” by Simon Singh
4. Learn math: Algebra, number theory, probability
5. Program: Implement simple ciphers
6. Online courses: Coursera, Stepik

Conclusion

Cryptography is not just complex mathematical formulas – it is the foundation of trust in the digital world. From protecting personal messages, financial transactions, to supporting blockchain and cryptocurrencies, its impact is enormous.

We have traced the journey from ancient scytale, through Enigma in wartime, to modern algorithms like RSA, AES, SHA. Understanding cryptography is becoming an important skill not only for security professionals but for anyone wanting to protect their online data.

New challenges ###quantum computers### are emerging, but new solutions ###post-quantum encryption, QKD### are also developing. This field will continue shaping the future of a secure digital society.

Take action today: Check if you are using cryptocurrency exchanges like Gate.io or other platforms – ensure they adhere to modern security standards. Use trusted tools, protect your private keys, and always stay informed about digital security.