Who is the certification authority in Bitcoin?

General Tech QA/Testing 2 years ago

0 2 0 0 0 tuteeHUB earn credit +10 pts

5 Star Rating 1 Rating

Posted on 16 Aug 2022, this text provides information on QA/Testing related to General Tech. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.

Take Quiz To Earn Credits!

Turn Your Knowledge into Earnings.

tuteehub_quiz

Answers (2)

Post Answer
profilepic.png
manpreet Tuteehub forum best answer Best Answer 2 years ago

If you would compare Bitcoin with electronic banking there are quite a lot of similarities like the encryption and hashing with private and public keys.

In electronic banking though the bank is the certification authority. Who is doing this in blockchain/Bitcoin?

profilepic.png
manpreet 2 years ago

Depending on what function of the certification authority you are looking for, Bitcoin doesn't need one, or the blockchain does it.

Identity in e-banking vs identity in Bitcoin network

Electronic banking relies on the communication between bank and customer being secure which is what they use encrypted protocols for. They don't use either hashing, nor private and public keys in any similar fashion as Bitcoin. Actually, when you order a payment through e-banking, you have to reveal all the secrets to the bank to authenticate yourself: E.g. you put in your user name, your password, and then a specific one-time code as requested by the bank, or when using a credit-card, you give name, credit card number and security code. As these pieces of information would be sufficient to hijack the payment in a man in the middle attack, communication needs to be secure and encrypted. To that end, a certification authority gives out "passports" that allow you to make sure you're talking to the right entity.

On the other hand, communication in Bitcoin is authenticated by the content of the message itself. When you order a payment, it includes a signature that could only have been created by the owner of the address that held the money previously. Nobody can change the message, because the signature would be invalid for any other message, and they cannot produce another valid signature without having access to the private key. The secret is not revealed to order the payment. Therefore, it is not necessary to encrypt communication within the network, and also there is no need to certify the identity of network participants. One can tell directly from the message whether it is valid or not, making the identity of the source of the message irrelevant.

Authenticity of payments in e-banking vs Bitcoin network

In e-banking only the bank and you know your balance. Therefore, when you order a payment, the bank will check their ledger and confirm the payment.

In Bitcoin, everyone can check whether a balance is available to be spent. As explained above the transaction order itself can be checked for validity by every participant, so it is impossible to spend money that isn't yours. The blockchain keeps track of the balances, therefore becoming the ledger everyone referring to when checking payments. Yet, the blockchain is extended in a decentral process, so while the blockchain is central to the network, it is maintained decentrally.

Where e-banking and Bitcoin are similar

The one thing that still can be attacked in the same way in Bitcoin as in e-banking is the other side of the payment: People can try to fool you into paying something that you didn't intend to pay for. You still need to figure out where to send money. That's where Banking and Bitcoin have the same vulnerability to phishing sites. In fact, Bitcoin is a bit at a loss there, because once you've sent the money it's gone, while you may have a recourse through your bank by having them reverse the payment.


0 views   0 shares

No matter what stage you're at in your education or career, TuteeHub will help you reach the next level that you're aiming for. Simply,Choose a subject/topic and get started in self-paced practice sessions to improve your knowledge and scores.

tuteehub community

Join Our Community Today

Ready to take your education and career to the next level? Register today and join our growing community of learners and professionals.

tuteehub community