Cryptographic Algorithm

What is a cryptographic algorithm?

A cryptographic algorithm is a set of mathematical rules and procedures that scrambles data into unreadable text. It uses encryption for transformation to ensure that only authorized parties can access and decrypt the information. 

These algorithms can secure data at rest, in transit, and during processing. Their effectiveness depends on the algorithm’s strength and secrecy levels. Many organizations utilize encryption software to change data into an unintelligible format using cryptographic algorithms. 

Companies mainly use encryption to secure communications and databases. It protects personally identifiable information (PII), payment card industry (PCI) data, and other protected health information (PHI) against data breaches. 

Classes of cryptographic algorithms

These algorithms are classified into three classes: hash function, symmetric-key algorithm, and asymmetric-key algorithm. 

• A hash function takes data and produces a fixed-size string of characters unique to that specific data. A slight change in the data results in a completely different hash. These unique hash values maintain the integrity and authenticity of data. It becomes the foundation for various security services, including message authentication, digital signatures, and key derivation. 
• Symmetric-key algorithm, or secret-key algorithm, uses the same cryptographic key for encryption and decryption. Both the sender and recipient are given the key. Encryption standards like triple data encryption standard (DES) and Twofish use symmetric encryption.
• Asymmetric-key algorithm, or public-key algorithm, uses a pair of keys: public private key. The public key is known to all, and the private key is exclusive to the key pair owner. Although these keys are mathematically related, the private key can’t be solved from the public key. Businesses use this to compute digital signatures and to verify identity. Encryption standards like the Diffie–Hellman key exchange, Rivest, Shamir, Adleman (RSA) use asymmetric-key algorithms. 

Benefits of cryptographic algorithms

Adopting a cryptographic algorithm delivers several benefits for businesses, such as: 

• Data protection. Unauthorized parties cannot access sensitive information because cryptographic algorithms encrypt it. The data becomes virtually unreadable without the correct decryption key.
• Data integrity. Data doesn’t go through unauthorized alterations while encrypted in storage or transmission. 
• Non-repudiation. Cryptographic algorithms ensure the sender or initiator accepts the exchange of data or messages. They make digital exchanges legal and hold involved parties accountable.
• Authentication. These algorithms verify the identity of the parties involved, enabling secure communication. It prevents fraudulent activities and offers trust in digital interactions.
• Privacy. Cryptography makes sure that only authorized parties can access a firm's information for analysis, decreasing the likelihood of a hacker tampering with confidential data. 

Features of a good cryptographic algorithm

The strength of encryption and decryption varies for different algorithms, but an excellent cryptographic algorithm should have the following characteristics. 

• The labor of encryption is directly proportional to secrecy. The amount of secrecy required determines the labor appropriate for encryption or decryption. It saves money on protecting something of little value. 

• It should be simple. The keys should be easy to transmit, store, and remember. The algorithm shouldn’t restrict the types of plaintext or the choice of keys. 

• Implementation ought to be easy. Keep encryption and decryption processes as straightforward as possible. 

• Ciphering errors don’t corrupt the information. Any error in computing or a human mistake shouldn’t impede the work of the rest of the cipher. 

• The size of enciphered text isn’t larger than the original message. Long cipher text implies more storage space and time to communicate. Moreover, longer enciphered text gives out more data to infer patterns.

Applications of cryptographic algorithms 

Cryptographic algorithms are widely used in day-to-day digital experiences. Blockchains rely on it. Other various uses include:

• Cryptocurrencies. Digital currencies like Bitcoin and Ethereum rely on cryptographic algorithms for transaction security and privacy. Blockchain technology uses cryptography to secure transactions and build trust in a decentralized environment.
• E-commerce. Online stores encrypt shoppers’ transactions and protect them against unauthorized modifications using cryptographic algorithms.
• Computer password security. When someone creates a password for an online account, cryptographic algorithms encrypt or hash it to shield it from improper access. While logging in, the password is hashed and compared against the stored hash value.
• Military operations. Cryptographic algorithms encrypt military communications, preventing them from any interception. 
• Digital signatures. Cryptographic algorithms make digital signatures that help verify the source and authenticity of digital documents. These signatures are tamper-proof and add a layer of security to transactions.
• Secure data and backup storage. Encryption safeguards large volumes of data at rest and in transit. Most modern cloud solutions use cryptography to encrypt data stored on secure backup drives. 
• Web security. Cryptographic algorithms promote secure communication on the internet. The hypertext transfer protocol secure (HTTPS) encrypts data in transit and makes sure sensitive information exchanges are secure. 
• Email security. Using cryptographic algorithms, most organizations employ file encryption to protect email communications, particularly sensitive conversations and attachments. Encryption technologies like secure multipurpose internet mail extensions (S/MIME) and pretty good privacy (PGP/MIME) guarantee the emails sent via the company domain remain private and secure.

Learn more about encryption key management and discover how it helps protect sensitive data.