Enabling Privacy: Cryptography's Contribution to Digital Society

Many services we consume today are digital. So what is the 'real world' and what is not becomes increasingly ambiguous. One thing is for sure: Where data breaches loom ominously, the quiet guardianship of cryptography has emerged as the modern business's impenetrable fortress. Behind this enigmatic science lies a symphony of techniques that encrypt, secure, and empower transactions in ways only a few can decipher. As we step into a future where data integrity is paramount for all of us, understanding the relevance of cryptography has become not just advisable but imperative.

What is it?

Imagine cryptography as a linguistic veil that only those equipped with the right "key" can unveil. At its core, it's the art of safeguarding (digital) information by converting it into unreadable code, rendering it useless to prying eyes. Two fundamental approaches exist: symmetric and asymmetric cryptography. Think of symmetric cryptography as a single key to lock and unlock your secrets. It's like a padlock: the same key that locks a box is used to open it. On the other hand, asymmetric cryptography introduces a double act – a pair of keys, one public and one private. The public key locks the box, and the private key, known only to the intended recipient, opens it. This dance of keys forms the foundation of secure digital communication today. An example might clarify the concept further: Imagine a locked mailbox on a busy street. Anyone can drop a letter in (encrypt), but only the mailbox owner, with the private key, can open and read it (decrypt). This elegant concept fuels secure online transactions, email or WhatsApp exchanges, and digital signatures, ensuring that only the intended parties can access sensitive information. It is also a mission-critical concept in the world of blockchains.

ZKP, FHE, MPC and beyond

Now picture a secret handshake between strangers – revealing neither party's identity but confirming mutual trust. Zero-knowledge proofs (ZKP) replicate this digitally,?validating information without exposing the underlying data. As powerful tool in authentication, it assures one party that the other holds certain information without actually sharing that information. For those of us working in finance, it is easy to imagine that this technology has the potential to change Know-your-Customer and related processes forever. Latest research by Professor Ari Juels at CornellTech and team even allows for “Accountability” in this context, which might be particularly relevant for regulators who may be concerned with sanctions. Now imagine one could perform calculations on the content of a safe without unlocking it. Homomorphic encryption (FHE) enables computations on encrypted data, safeguarding the privacy of sensitive information while allowing data manipulation. This breakthrough technology has immense potential. Soon a crowd of data scientists will be able to compute Credit Ratings for Small and Medium-sized companies without seeing their financials. Or envision a roundtable discussion where participants share their inputs without revealing personal notes. Multiparty computations (MPC) enable multiple parties to collaborate on encrypted data without sharing the raw information, fostering cooperation while preserving confidentiality.

Where else does Cryptography protect us?

Consider a business executive transmitting proprietary information across continents. With asymmetric cryptography, the data is locked with a public key during transit and unlocked by the intended recipient's private key, safeguarding it from prying eyes. A financial institution is collaborating on research without compromising client privacy. Homomorphic encryption enables researchers to analyze encrypted client data while preserving the confidentiality of individual records.Imagine a consortium of companies sharing sensitive market data for analysis. Multiparty computations allow them to collectively derive insights without exposing individual data sets, fostering innovation while maintaining competitiveness.

Looking ahead

As global cyber threats by adverse actors evolve, cryptography adapts to face new challenges. It's not just about securing data at rest or in transit anymore. Cryptography's role in emerging technologies, like the Internet of Things (IoT) and quantum computing, is taking centre stage as we speak. While some say quantum computing will render current cryptographic methods useless, others argue in favour of an arms race between the two, ultimately handling our data more securely than today. Because digital trust is currency, cryptography is the vault that keeps it safe. Its relevance is undeniable and we are all better off about learning fundamental cryptographic concepts. As we venture deeper into a data-driven future, with or without blockchain, understanding and practically harnessing the power of cryptography will be the necessary differentiator between those who succeed and those who fall victim to digital vulnerabilities. The next time you send an email, make a digital payment, or even embark on a journey through the labyrinth of blockchains, remember that behind the curtain of cryptic codes lies a timeless protector our digital society: cryptography.