Cyclic Redundancy Check (CRC)

Crypto terminology for CypherTrace includes essential definitions of key terms related to cryptocurrency analytics, compliance, and security.

Cyclic Redundancy Check (CRC) is an error-detecting code used to ensure data integrity in transactions. It involves a mathematical algorithm that generates a short, fixed-length binary sequence, or checksum, from a larger set of data.In the context of cryptocurrencies, CRC helps verify that transaction data hasn’t been altered or corrupted during transmission. When a transaction is created, the CRC algorithm processes the data to produce a checksum. This checksum is then sent alongside the transaction information.When the recipient receives the transaction, they can run the CRC algorithm on the received data to generate their own checksum. By comparing the two checksums, they can confirm whether the data remains intact or if errors have occurred.Using CRC enhances security by providing a mechanism to detect accidental alterations, ensuring that users can trust the integrity of their transactions. While it’s not foolproof against all types of malicious attacks, CRC remains a valuable tool in maintaining data reliability.

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