Block Cipher

In cryptocurrency, a Block Cipher refers to an encryption algorithm used to secure transactions and data on the blockchain. It operates by breaking data into fixed-sized blocks and encrypting each block separately. This method ensures data confidentiality and integrity, making it difficult for unauthorized parties to access or tamper with the information.

Block ciphers use a specific key to encrypt and decrypt data, making it essential to keep the key secure to maintain confidentiality. The cryptographic strength of a block cipher is determined by the key length and the algorithm used.

One common example of a block cipher used in cryptocurrency is the Advanced Encryption Standard (AES), which is widely adopted for its security and efficiency. AES operates by transforming plaintext data into ciphertext through a series of substitution and permutation steps based on the encryption key.

Overall, block ciphers play a crucial role in maintaining the security and privacy of transactions and data on the blockchain in the world of cryptocurrency.