Hybrid Encryption

Hybrid Liquidity in crypto refers to a model combining centralized and decentralized liquidity sources, enhancing trading efficiency and market access.

Hybrid encryption combines the strengths of both symmetric and asymmetric encryption methods to secure data. In this system, asymmetric encryption is used to securely share a symmetric key, which in turn encrypts the actual data.When a user wants to send a secure message, they first generate a symmetric key. This key is then encrypted using the recipient’s public key, ensuring that only the intended recipient can decrypt it with their private key. After encrypting the symmetric key, the sender uses it to encrypt the message or data. This process is efficient for handling large amounts of data, as symmetric encryption is generally faster than asymmetric encryption.Upon receiving the message, the recipient first decrypts the symmetric key with their private key. Using this key, they can then decrypt the message. This combination offers robust security by ensuring that sensitive keys are exchanged securely while maintaining efficient data encryption for larger payloads.

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