The Cryptocurrency Industry Name Change
In March, representative exchanges Bithumb, Upbit, CoinOne, and Cobit announced that they would review the change under the name of virtual assets, and have been renaming since April.
Some exchanges use the term cryptocurrency as it is or change it to another name. Two trees said they decided to use the term “digital assets.” This is because the term virtual asset seems to have no real value as a virtual asset.
The reason why related industries change their names is to respond to global trends. The International Anti-Money Laundering Organization (FATF) plans to implement the Act on the Reporting and Utilization of Certain Financial Transaction Information (Special Law) in March next year in relation to the cryptocurrency asset business license system. However, cryptocurrency is expressed as a virtual asset. Accordingly, for the time being, cryptocurrency and virtual assets are expected to be mixed and used.
The reason it is called cryptocurrency is simple. This is because cryptography is mainly used. This sparked the interest of cryptographers. In fact, some cryptography experts are active in the domestic and foreign cryptocurrency industry.
So, where was the cryptography technology used? The most prominent part is the trading part. Cryptocurrency uses an ‘asymmetric encryption algorithm’ for secure transactions.
Asymmetric encryption algorithms, as can be deduced from terminology, are techniques for encrypting and decrypting message content with two asymmetric keys. The asymmetric encryption algorithm uses two keys: a private key and a public key.
The secret key should not be literally disclosed to the outside. You can understand it with your resident registration number or password for your email account. On the other hand, the public key is a key that can be released to the outside. You can understand it by account number or email address. For reference, the secret key can generate a public key, but the public key cannot create a secret key.
Another feature is that encryption and decryption are done with different keys. Therefore, only the public key that is paired with the secret key can be decrypted, and only the secret key that is paired with the public key can be decrypted.
This feature of the asymmetric encryption algorithm provides two functions. Personal signature and message safety. The user can sign using the secret key. Only the owner can sign the secret key, since only the owner knows it. The trading party can use the signature function to indicate that it has been approved for the transaction.
Message safety can also be ensured. In cryptocurrency, it is used for the transfer method. The sender encrypts the remittance with the recipient’s public key to send it securely to the recipient. Then the recipient can decrypt it with his / her own secret key and receive it.
Cryptography was also used to protect transaction history. For reference, this level of data protection is absolutely not hackable. Quantum computers must be used to break this.
The reason is simple. This is because cryptocurrency utilizes blockchain technology. In cryptocurrency, a bundle of transaction data is called a block. And these blocks are chained together. But it is not just tied. They are intertwined like dominoes using cryptography. When one side is changed, it is a method of chaining.
In more detail, a cryptographic function called a ‘hash function’ is used to record data. These functions convert specific values to encrypted values, or hash values.
The hash function has two characteristics. First, a specific value cannot be inferred from the hash value. It is expected that only quantum computers will be possible. For reference, Bitcoin uses a hash function called SHA-256. There is a cryptographic function with 64 hexadecimal strings. When converted to binary, it has a value corresponding to 2 ^ 256. To hack this, 2 ^ 130 attempts must be made according to the birthday paradox theory. As a general supercomputer, it takes 10 billion days.
Second, if the input value and the hash function are the same, the same hash value is unconditionally calculated. For example, if you put ‘XYZ’ in the A hash function, assuming that ‘! @ #’ Comes out, it means that if you input ‘XYZ’, only ‘! @ #’ Is calculated.
Cryptocurrency uses this method to show the integrity of data retention. Make A block a hash value. Then, it is inserted into the block B. Then, B is converted to a hash value. The hash value is then inserted into the block C. In this way, block hash values are inserted in chain form. Then, when a specific block is forged, the block is subsequently changed.
Cryptocurrency Name Change - /10
Cryptocurrency Industry is Currently Undergoing a Name Change