To achieve absolute security of users’ funds, all Capital Coin transactions are vetted by Blockchain technology and highly secured by Cryptography.
Blockchain uses cryptography to secure all transactions, maintain data integrity and control the creation of additional units. Cryptography uses the logic of Encryption, Decryption, Digital signatures and Hash functions to secure the data in the presence of any third party.
Blockchain technology: Capital coin assets and transactions are secure because all transactions are vetted by a Blockchain technology. A blockchain is a special kind of database organized into blocks, which are chronologically arranged and secured by cryptography.
The structure ensures that data is secure, transparent, and immutable. It’s virtually impossible to change data stored in a block after the block is confirmed and added to the chain. A Blockchain is a decentralized digital ledger that is maintained by a distributed network of computers.
The decentralized structure also removes the need for a central authority thus Blockchain transactions can happen between users without the need for intermediaries. At its core, a blockchain is a digital ledger that securely records transactions between two parties in a tamper-proof manner.
The transaction data is recorded by a globally distributed network of computers (nodes). Each block contains: • Data (e.g., transaction details) • A timestamp A digital record of the time of occurrence of a particular event • A cryptographic hash: A unique identifier created by running the block’s data through a hashing algorithm. • Previous block's hash: This is what links blocks together, forming the chain. Blocks are chained together using cryptographic methods, forming the blockchain.
Consensus Algorithm: The process of verifying transactions and adding them to the blockchain is done through a consensus mechanism, a set of rules that govern how nodes on the network come to an agreement about the state of the blockchain and the validity of transactions.
To add a block to the chain, participants in the network must agree on its validity. This is achieved using a consensus algorithm, such as Proof of Work (PoW) or Proof of Stake (PoS). Capital coin is built on the Tron Network that uses the Proof of Stake Consensus Algorithm. In the Proof of Stake consensus mechanism, block validators are chosen based on their stake in the network.
Tron Network specifically utilizes a delegated Proof of Stake (DPoS) where once transactions are validated by the delegates (elected representatives), a block is added to the blockchain. Each subsequent block references the previous one, ensuring a tamper-proof structure. In other words, for a new block to be validated, it must use the previous block identifier.
Cryptography: Cryptography is the science of secure communication that uses mathematics and computers to create hidden messages. Cryptography is therefore the process of hiding or coding information so that only the person a message was intended for can read it thus, Cryptography (or cryptology) is one solution that has made it possible to protect our information from some of the risks associated with data storage and distribution.
In a basic process of text encryption, a plaintext (data that can be clearly understood) undergoes an encryption process that turns it into ciphertext (which is unreadable). By doing this, one can guarantee that the information sent can only be read by a person in possession of a specific decryption key. By using specific cryptographic techniques, one is able to send sensitive data over networks. Learning how cryptography works is critical to understanding its security importance within Blockchain systems such as the one Capital Coin uses.
Modern cryptography consists of various areas of study, but some of the most relevant are the ones that deal with symmetric encryption, asymmetric encryption, hash functions, and digital signatures
Symmetric vs Asymmetric Encryption. In cryptography, encryption algorithms generate keys as a series of bits that are used for encrypting and decrypting a piece of information. Encryption algorithms are often divided into two categories, known as symmetric and asymmetric encryption.
The fundamental difference between these two methods of encryption relies on the fact that symmetric encryption algorithms make use of a single key, for both encryption and decryption. This key is kept private, and is often used to encrypt data that is stored in a static location, like a database.
Symmetric encryption is faster than asymmetric encryption while asymmetric encryption makes use of two different but related keys, one public and one private, to encrypt and decrypt data. Anyone can use the public key to encrypt data, but only the holder of the private key can decrypt it.
Asymmetric encryption is also known as public key cryptography. While symmetric encryption algorithms use the same key to perform both the encryption and decryption functions, an asymmetric encryption algorithm, by contrast, uses one key to encrypt the data and another key to decrypt it.
In asymmetric systems, the key used for encryption is known as the public key and can be freely shared with others while the key used for decryption is the private key and should be kept in secret.
In symmetric schemes, the keys are randomly selected while in asymmetric encryption, there must be a mathematical relationship between the public and private keys, meaning that there is a mathematical pattern between the two. The length of symmetric keys is usually set at 128 or 256 bits, depending on the required level of security.
In the case of Asymmetric keys that have a mathematical pattern between public and private keys, the pattern can potentially be exploited by attackers to crack the encryption thus, the keys need to be much longer than the Symmetric keys to present an equivalent level of security.
The difference in key length is so pronounced that a 128-bit symmetric key and a 2,048-bit asymmetric key offer roughly similar levels of security. Such a distinction, though apparently simple, accounts for the functional differences between the two forms of encryption techniques and the ways they are used.
Symmetric encryption is generally considered less secure because it uses one key, while Asymmetric encryption is generally considered more secure and versatile than the symmetric encryption because it uses two keys. However, asymmetric encryption is slower and less efficient than symmetric encryption, and it can be more complex to manage. The choice between symmetric and asymmetric encryption depends on the user's specific needs and the Capital Coin network uses Asymmetric encryption to secure users transactions.
Digital Signatures: Digital signatures are based on Public Key infrastructure. By this mechanism, two keys are generated, a Public Key and Private Key. The private key is kept by the signer and it should be kept securely. On the other hand, the receiver must have the public key to decrypt.
For example, if you send Capital Coins, the transaction is encrypted and broadcast on the network. The receiver must have a public key to sign the transaction digitally and receive the payment. The public key decrypts the message and converts it into another hash value.
Then, the program which is used to open the message compares this new hash value to the original hash value which was generated on the Sender’s side. If the hash value on Sender’s side matches with the hash value generated on receiver’s side, then the program will complete the payment.
Otherwise, the program will not allow the payment completion if both hash values don’t match. In the Capital Coin system, digital signatures guarantee that each user is only able to spend funds of his own wallet or account and that these funds can't be spent more than once.
Hash functions: A Hash function is mathematical function used in cryptography to typically take inputs of variable lengths and return outputs of a fixed length. The hash functions thus transform or "map" a given data set into a bit string of fixed size, also known as the "hash value." Hash functions are used in the Capital Coin system for transactions, password and message security.
In the Capital Coin system, Hash functions are important elements of the Protocol termed as the Hashcash function, which define the Proof of Stake consensus mechanism and the validation process (responsible for securing the network, validating transactions and generating new coins).
Capital Coin is built on the Tron chain thus specifically uses the Keccak-256 to hash information which is a Secure Hash Algorithm 3 Standard (SHA-3). Keccak-256 is a high security collision resistant Hash function.
Find the Link to the Project on X
