• Internal Code :
• Subject Code : SIT111
• University : Deakin University
• Subject Name : IT Computer Science

Cryptography and Cryptocurrencies

1. What is a cipher? How does it secure a message?

Cipher is a type of algorithm that is used to encode the plain text into an encoded form known as ciphertext. This text is used to communicate and send the message over the network to avoid the information being stolen. The receiver can decode this cipher by using the key for this cipher and can make it a plain text. To decide a key before encrypting the text is very important because without the key it is very difficult (if not impossible) to convert the cipher into readable text. Cipher can secure a message by encrypting on the sender side and then by decrypting at the receiver side having the relevant key and thus it saves the message from any third party to read this.

2. What operations are used in the DES?

A 48-bit key is applied to the rightmost 32 bits In DES that produces a 32-bit output. After the process of expansion permutation DES applies an XOR operation on the expanded rightmost section of this and round key which is only used in this process. Thus the DES encrypts the data in blocks of 64 bits and at the receiver side, it decrypts the data using the same key and algorithm.

3. What operations are used in the AES?

Encryption is a process that uses a set of round keys that are derived especially for this purpose. In AES a set of round keys is derived from the cipher key and it initializes state array with block data. Then the initial round key is added to the starting state array. Then it performs ten rounds of state manipulation and then the encrypted data is copied.

4. How is a public key cryptographic system different from a private key cryptographic system?

In public-key cryptographic two keys are used for encryption and decryption. One key is used by the sender for the encryption of plain text and the second key is used by the receiver for the decryption of cipher in plain text.

5. What is a cryptocurrency?

It is a digital currency that works as a payment currency and utilizes the digital medium for exchange and uses peer to peer technology to create and manage monetary transactions as opposed to a central authority. It is a virtual currency that does not have any physical occurrence like banknotes. It only exists in electronic form.

6. How is cryptography used in crypto currencies?

Cryptography is encryption and decryption of data or information to keep it secret from the third party. It is used in crypto currencies for few reasons such as to secure the transaction so that the only receiver having the key code can only receive it and no third party can steal it. It is also used to restrict the creation of additional units. So that no one can create duplicates of the currency that he has. And one more reason for using cryptography is to verify the transfer of assets using crypto currency.

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