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3. Advanced Course

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  1. 1. What is Taproot?
  2. 2. Blockchain bridges – what are they?
  3. 3. What is Ethereum Plasma?
  4. 4. What is Ethereum Casper?
  5. 5. What is Zk-SNARK and Zk-STARK? 
  6. 6. What is Selfish Mining? 
  7. 7. What is spoofing in the cryptocurrency market? 
  8. 8. Schnorr signatures - what are they? 
  9. 9. MimbleWimble - what is it? 
  10. 10. What is digital property rights in NFT?
  11. 11. What are ETFs and what role do they play in the cryptocurrency market? 
  12. 12. How to verify a cryptocurrency project – cryptocurrency tokenomics 
  13. 13. What is the 51% attack on blockchain?
  14. 14. What is DAO, and how does it work?
  15. 15. Zero-knowledge proof – a protocol that respects privacy 
  16. 16. What is EOSREX?
  17. 17. What is Proof of Elapsed Time (PoET)?
  18. 18. Mirror Protocol – what it is? 
  19. 19. What are synthetic assets? 
  20. 20. How to create your own NFT? 
  21. 21. Definition of DeFi, and what are its liquidations?
  22. 22. New identity system - Polygon ID
  23. 23. Ethereum Foundation and the Scroll protocol - what is it?
  24. 24. What is Byzantine fault tolerance in blockchain technology?
  25. 25. Scalability of blockchain technology - what is it?
  26. 26. Interchain Security - new Cosmos (ATOM) protocol
  27. 27. Coin Mixing vs. Coin Join - definition, opportunities, and threats
  28. 28. What is Ethereum Virtual Machine (EVM) and how does it work?
  29. 29. Soulbound Tokens - what are they, and how do they work?
  30. 30. Definition of LIDO - what is it?
  31. 31. What are Threshold Signatures, and how do they work?
  32. 32. Blockchain technology and cyberattacks.
  33. 33. Bitcoin script - what it is, and what you should know about it.
  34. 34. What is zkEVM, and what are its basic features?
  35. 35. Do confidential transactions on blockchain exist? What is a Confidential Transaction?
  36. 36. Algorithmic stablecoins - everything you should know about them.
  37. 37. Polygon Zk Rollups ZKP - what should you know about it?
  38. 38. What is Web3 Infura?
  39. 39. Mantle - Ethereum L2 scalability - how does it work?
  40. 40. What is the NEAR Rainbow Bridge?
  41. 41. Liquid Staking Ethereum and LSD tokens. What do you need to know about it?
  42. 42. Top 10 blockchain oracles. How do they work? How do they differ?
  43. 43. What are Web3.js and Ether.js? What are the main differences between them?
  44. 44. What is StarkWare, and recursive validity proofs
  45. 45. Quant Network: scalability of the future
  46. 46. Polygon zkEVM - everything you need to know
  47. 47. What is Optimism (OP), and how do its roll-ups work?
  48. 48. What are RPC nodes, and how do they work?
  49. 49. SEI Network: everything you need to know about the Tier 1 solution for DeFi
  50. 50. Types of Proof-of-Stake Consensus Mechanisms: DPoS, LPoS and BPoS
  51. 51. Bedrock: the epileptic curve that ensures security!
  52. 52. What is Tendermint, and how does it work?
  53. 53. Pantos: how to solve the problem of token transfer between blockchains?
  54. 54. What is asymmetric encryption?
  55. 55. Base-58 Function in Cryptocurrencies
  56. 56. What Is the Nostr Protocol and How Does It Work?
  57. 57. What Is the XDAI Bridge and How Does It Work?
  58. 58. Solidity vs. Rust: What Are the Differences Between These Programming Languages?
  59. 59. What Is a Real-Time Operating System (RTOS)?
  60. 60. What Is the Ethereum Rinkeby Testnet and How Does It Work?
  61. 61. What Is Probabilistic Encryption?
  62. 62. What is a Pinata in Web 3? We explain!
  63. 63. What Is EIP-4337? Will Ethereum Account Abstraction Change Web3 Forever?
  64. 64. What are smart contract audits? Which companies are involved?
  65. 65. How does the AirGapped wallet work?
  66. 66. What is proto-danksharding (EIP-4844) on Ethereum?
  67. 67. What is decentralised storage and how does it work?
  68. 68. How to Recover Cryptocurrencies Sent to the Wrong Address or Network: A Practical Guide
  69. 69. MPC Wallet and Multilateral Computing: Innovative Technology for Privacy and Security
  70. 70. Threshold signature in cryptography: an advanced signing technique!
  71. 71. Vanity address in cryptocurrencies: what is it and what are its characteristics?
  72. 72. Reentrancy Attack on smart contracts: a threat to blockchain security!
  73. 73. Slither: a static analyser for smart contracts!
  74. 74. Sandwich Attack at DeFi: explanation and risks!
  75. 75. Blockchain RPC for Web3: A key technology in the world of decentralized finance!
  76. 76. Re-staking: the benefits of re-posting in staking!
  77. 77. Base: Evolving cryptocurrency transactions with a tier-2 solution from Coinbase
  78. 78. IPFS: A new era of decentralized data storage
  79. 79. Typical vulnerabilities and bridge security in blockchain technology
Lesson 61 of 79
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61. What Is Probabilistic Encryption?

Cryptography is an important part of blockchain technology. Blockchain development in essence would not be possible if it were not for probabilistic encryption.

So what is this type of encryption? It is an algorithm that can apply randomness to the entire encryption mechanism. As a result, for each input of data, a different result will be obtained with each interaction performed. This is how probabilistic encryption algorithms offer a higher level of security than that achieved by widely used deterministic techniques.

The use of probabilistic encryption is expected to improve asymmetric cryptography. At this point you need to remember one very important thing – probabilistic encryption is an important element when it comes to protecting the privacy of our daily digital lives. And we are not just talking about blockchain, but about every aspect of technology.

Probabilistic Encryption – How Does It Work?

In its operation, it uses randomness in the encryption algorithm. So, for example, during multiple encryptions of the same text, we obtain different encrypted texts. The probabilistic algorithm itself triggers a random number generator and uses in its operation the output of this generator in such a way that the result depends on… random numbers and the plaintext and key.

This type of encryption is so secure that it very often causes problems. Especially when the logic is performed on the database or when the encrypted values are compared with a given string, or among themselves. Usually this term is used to refer to public-key encryption algorithms. However, different encryption algorithms, especially those with a symmetric key, achieve similar properties. Therefore, in order to be semantically secure and hide partial information in plaintext, an encryption algorithm must be probabilistic.

The History of Probabilistic Encryption Systems

To further understand the algorithm, let’s take a look at its history. The algorithm is credited to Ralph Merkle, Whitfield Diffie and Martin Hellman. It was they who proposed the first cryptographic proposals that used elements of probabilistic encryption in their operation. The success basically was that this new idea effectively secured a new communications horse even when the communications environment itself was not secured.

As a result, this much-needed advance led to the creation of one of the first asymmetric encryption systems with the most widely used probabilistic element – the RSA algorithm.

The RSA protocol is still used on the Internet, as well as in many digital systems around the world. Currently, however, the use of probabilistic algorithms in RSA is relatively small.

Security of Cryptographic Systems Using Probabilistic Algorithms

The problem that arises with probabilistic encryption systems is that creating them using deterministic machines always creates a loophole or space where we cannot fully verify security.

In theory – they are perfect. In practice, at the level of algorithm implementation we cannot fully guarantee its security. Of course, this problem can be solved with quantum computers. You will probably ask – but how? Well, they are inherently probabilistic, and it is thanks to them that we can fully verify the security of cryptographic systems.

Summary

What else do you need to know about this encryption method? That existing implementations are computationally inefficient and do not compensate for security, especially in terms of the computing power consumed and the performance the algorithm offers. In the case of probabilistic encryption, there is still much to be done.

Until we develop complex algorithms that take full advantage of this encryption model, we are left to improve the probabilistic basis that already exists and protects us today.