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Know Your Customer (KYC)
KYC, or “Know Your Customer,” is a process used by financial institutions to verify the identity of their clients and assess their potential risks, primarily to prevent illegal activities like money laundering, fraud, and terrorist financing. This process usually requires customers to submit personal identification documents (e.g., passport, utility bills), which are then verified by…
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Permissioned & Permissionless systems
Permissioned and Permissionless systems are two types of blockchain architectures that determine how participants can access, interact with, and contribute to the network. The key difference lies in who is allowed to participate and how control is managed across the network. Permissioned Blockchain Systems A permissioned blockchain restricts participation to a predefined group of entities.…
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Self-Sovereign Identity (SSI)
Self-Sovereign Identity (SSI) is a concept in digital identity management that allows individuals or entities to have full control and ownership over their personal data and digital identities without relying on a centralized authority. With SSI, individuals can manage their identity independently, securely store personal data, and selectively share only the necessary information with third…
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Popular Types of Blockchain Attacks
Several types of attacks can target blockchains, aiming to exploit vulnerabilities in the consensus mechanisms, network, or cryptographic protocols. Below is an overview of the most common and significant attacks that occur in blockchain environments: 1. 51% Attack (Majority Attack) 2. Sybil Attack 3. Double-Spend Attack 4. Eclipse Attack 5. DDoS Attack (Distributed Denial of…
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Network Time Protocol (NTP)
Network Time Protocol (NTP) is a protocol used to synchronize the clocks of computers and devices across a network. It ensures that the system clocks of multiple machines, regardless of geographic location, remain in sync with each other. This is critical for many applications, such as logging events, coordinating processes, or ensuring security mechanisms function…
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Shor’s Algorithm
Shor’s Algorithm is a quantum algorithm developed by mathematician Peter Shor in 1994 that efficiently solves two important problems in number theory: integer factorization and discrete logarithms. These problems form the basis of the security of many widely used cryptographic systems, such as RSA (for encryption) and Elliptic Curve Cryptography (ECC). On a sufficiently powerful…
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The Blockchain Trilemma
The Blockchain Trilemma refers to a concept in blockchain development that suggests there is a trade-off between three key properties: decentralization, scalability, and security. According to this trilemma, it is challenging for a blockchain to fully optimize all three of these properties simultaneously. Instead, developers often have to make compromises and prioritize two at the…
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Quantum-safe Algorithms
Quantum-safe algorithms (also known as post-quantum cryptographic algorithms) are cryptographic algorithms designed to be secure against attacks by quantum computers. These algorithms aim to protect data from the potential threats posed by the powerful computational abilities of quantum computers, which could break many of the cryptographic systems used today. Quantum computers leverage the principles of…
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Hash-Based Encryption Algorithms
A hash-based encryption algorithm refers to a cryptographic technique that uses hash functions in conjunction with encryption processes. While hash functions themselves do not perform encryption (since they are one-way functions), they are often used as part of encryption systems to ensure data integrity, verify identities, or create cryptographic keys. In cryptography, hash functions are…
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Vote-Based Consensus Method
A vote-based consensus method is a type of consensus algorithm used in distributed systems or blockchains, where nodes in the network participate by voting to agree on a common decision. Each node has a “vote” that it casts in favor of a particular block or transaction, and the network reaches consensus when a certain number…
