In this section, we will look at the cryptography associated with the bitcoin crypto-currency. Primarily we will look at how cryptography helps us use hashes as identities that carry out transactions, how it helps verify the validity and integrity of transactions, and how it helps regulate mining (generating new coins).
A basic cryptocurrency system relies only on a few well-known cryptography concepts. We can look at some advanced stuff later when we see how these are actually modified and implemented in Bitcoin. So first we need to prepare.
This section talks mainly about the following topics:
- Use of cryptographic hash functions
- Associated data structures
- What are digital signatures
- How are public identities created
We can move on to talk about hash functions now.