Home/Blockchain/Encryption vs Hashing/Real World Applications

🌎 When to Encrypt vs When to Hash

Explore real-world use cases: passwords, messages, data integrity, and blockchain

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Hashing Deep Dive

🌍 Real-World Applications

These aren't just theoretical concepts - encryption and hashing power the digital world you use every day!

🎯 Filter by Type

₿

Bitcoin Transactions

Uses BOTH encryption and hashing together

🔐 Encryption: ECDSA signatures prove you own the coins
👆 Hashing: Transaction IDs and block linking use SHA-256
🖥️

SSH (Secure Shell)

Remote server access uses both techniques

🔐 Encryption: Session traffic encrypted with symmetric keys
👆 Hashing: Public keys fingerprints verified via hash
📜

Digital Certificates (SSL)

Website certificates combine both

🔐 Encryption: Certificate signed with private key
👆 Hashing: Certificate hash ensures it hasn't been tampered with

🔗 Blockchain Deep Dive

Blockchain is the perfect example of encryption and hashing working together in harmony!

🔐
Where Encryption is Used:
  • •
    Wallet Private Keys:

    Encrypted with password using AES

  • •
    Transaction Signatures:

    ECDSA proves ownership without revealing key

  • •
    Node Communication:

    Peers can encrypt messages over network

👆
Where Hashing is Used:
  • •
    Block Linking:

    Each block contains hash of previous block

  • •
    Transaction IDs:

    SHA-256 hash uniquely identifies each transaction

  • •
    Mining (Proof of Work):

    Find hash below target difficulty

  • •
    Merkle Trees:

    Efficiently verify transactions in a block

🚨 What Happens If You Mix Them Up?

❌
Using Encryption for Data Integrity:

Wrong approach: Encrypt file to "protect" it from changes

Problem: Anyone with the key can decrypt, modify, and re-encrypt. You won't detect the change!

✓ Correct approach:

Use hashing! Store hash separately. Any change = different hash.

❌
Using Hashing for Confidentiality:

Wrong approach: Hash sensitive data to "hide" it

Problem: Cannot get original data back. If you need to read it later, you're stuck!

✓ Correct approach:

Use encryption! You can decrypt later when you need the original data.

🎯 Quick Decision Guide

🔐
Use Encryption When:
  • ✓ You need to retrieve original data later
  • ✓ You want to hide information from others
  • ✓ You need confidentiality and privacy
  • ✓ Examples: Messages, passwords, files, keys
👆
Use Hashing When:
  • ✓ You need to verify data hasn't changed
  • ✓ You want a unique identifier
  • ✓ You don't need the original data back
  • ✓ Examples: Checksums, IDs, blockchain links, password storage