Financial cryptography is cryptography used in finance rather than for military or diplomatic purposes. Subversion of the message system can result in financial loss in financial cryptography. Financial cryptography uses certain mechanisms and algorithms to protect financial transfers.
Examples of Financial Cryptography
Proof-of-work, proof-of-stake, and proof-of-space are examples of financial cryptography protocols. Professors like Ian Grigg see financial cryptography consisting of seven layers. These layers are cryptography, software engineering, accounting, rights, governance, value, and financial applications.
The Blind Signature
The blind signature is a cryptographic signature that allows virtual coins to be signed without the signer seeing the actual coins. Financial cryptography originates from the blind signature. Dr. David Chaum invented the blind signature. Concepts like the blind signature are nowadays used in blockchain technologies to send, receive, and trade cryptocurrencies. In the past, people used the Data Encryption Standard to protect electronic fund transfers. PayPal is one of the earliest successful companies that use financial cryptography as a core business model.
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