Encryption in blockchain refers to the process of converting original data (plaintext) into a secure and encoded format (ciphertext). This is done to protect sensitive data from unauthorised access or tampering. Encryption plays a crucial role in ensuring the confidentiality, integrity, and security within blockchain networks and cryptocurrency transactions.
When a transaction is initiated, the data related to the transaction — such as the sender’s and receiver’s wallet addresses, the amount, and other details — are encrypted using cryptographic algorithms. This ensures that only authorised parties can access and decipher this information.
