Part 3 Cryptography and Blockchain Insurance Tech

Address

A unique identifier derived from a public key that serves as the destination for cryptocurrency payments.

Asymmetric-key Cryptography

A system using a public key for encryption and a private key for decryption

Authentication

The process of verifying identity to ensure access is granted to the correct person or system.

Avalanche Effect

A property of cryptographic hash functions where a small input change produces a drastically different output.

Binary System

A numeric system using only 0s and 1s

Bitcoin

A decentralized digital currency introduced by Satoshi Nakamoto that uses blockchain technology as a medium of exchange and store of value.

Block

A collection of transactions in a blockchain containing a timestamp and the hash of the previous block.

Blockchain

A distributed

Centralized Network

A network where all machines rely on a central server

Ciphertext

The encrypted and unreadable form of a message produced from plaintext.

Coinbase Transaction

A special transaction with no payer that rewards miners with newly created cryptocurrency.

Collateral

The stake users lock up in a Proof of Stake system to participate in block validation.

Collision Resistance

A hash function property that makes it infeasible for two different inputs to produce the same hash.

Consensus Mechanism

The process by which a distributed network agrees on the valid state of a blockchain ledger.

Cryptographic Hash Function

A function that converts input text into a fixed-length digest that is pre-image and collision resistant.

Cryptography

The study of techniques used to secure communication by ensuring confidentiality

Data Confidentiality

A security principle ensuring information remains private

Data Integrity

The assurance that data has not been altered or tampered with.

Decentralized Applications (dApps)

Applications that run on decentralized platforms like blockchains rather than central servers.

Decentralized Network

A network where control and authority are distributed among multiple nodes rather than a single server.

Decryption

The process of converting ciphertext back into readable plaintext using a key.

Digest

The fixed-length output produced by a cryptographic hash function.

Digital Signature

A cryptographic technique that uses a private key to verify authenticity

Discrete Logarithm Problem

The computational difficulty of deriving a private key from a public key in elliptic curve cryptography.

Distributed Ledger

A peer-to-peer database that records transactions permanently without central authority.

Double Spending

The attempt to spend the same digital currency more than once

Elliptic Curve Cryptography (ECC)

A cryptographic system that generates key pairs using mathematical operations on elliptic curves.

Encryption

The process of converting plaintext into ciphertext to prevent unauthorized access.

Ethereum

A decentralized blockchain platform that supports smart contracts and decentralized applications.

Fork

A blockchain event where multiple versions of the chain temporarily exist

Gas

A unit measuring computational work required to execute operations on the Ethereum network.

Genesis Block

The first block in a blockchain.

Immutability

The property of blockchain data that prevents alteration or deletion once recorded.

Key Pair

A matched set of public and private keys used in asymmetric cryptography.

Ledger

A record of transactions that represents the authoritative source of account balances in a blockchain.

Merkle Tree

A binary tree of hashed transactions that allows efficient validation using a single root hash.

Miners

Network participants who validate transactions and create new blocks in exchange for rewards.

Mining

The process of validating transactions and solving computational puzzles to add blocks to a blockchain.

Nodes

Computers connected to a network that store data or validate transactions.

Non-repudiation

A security property ensuring a sender cannot deny having sent a message.

Nonce

A number miners adjust to produce a hash with required characteristics during Proof of Work.

Oracle

A service that supplies external real-world data to smart contracts on a blockchain.

Peer-to-Peer (P2P)

A network architecture where data and authority are distributed among connected machines.

Plaintext

The original readable form of a message before encryption.

Pre-image Resistance

A hash function property that makes it infeasible to determine the original input from its hash.

Private Key

A secret key used to decrypt messages or sign transactions in asymmetric cryptography.

Proof of Stake

A consensus mechanism where block validators are chosen based on the amount of collateral they provide.

Proof of Work

A consensus mechanism requiring computational effort to validate blocks and secure the blockchain.

Protocol

A set of rules governing how data is transmitted

Public Key

A freely shared key derived from a private key and used to encrypt messages.