Encryption technology involves the process of converting information into a code to prevent unauthorized access. In the context of digital assets, it secures transaction data, private keys, and communication channels on blockchain networks. This cryptographic method ensures data confidentiality and integrity, protecting sensitive information from malicious actors. It forms a fundamental security layer for digital asset systems.
Context
The ongoing advancements and applications of encryption technology are a constant subject in crypto news, particularly concerning the security and privacy of digital assets. Discussions often revolve around the strength of cryptographic algorithms and their resilience against quantum computing threats. Robust encryption is essential for maintaining the trustworthiness and long-term viability of blockchain infrastructure.
The new cToken primitive uses Fully Homomorphic Encryption to enable audit-ready on-chain privacy, eliminating a core institutional barrier to DeFi adoption.
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