Understand Encryption Technology and Authentication Mechanisms in One Article: How They Work Together to Protect Your Data

author
Max
2025-11-05 18:10:51

Understand Encryption Technology and Authentication Mechanisms in One Article: How They Work Together to Protect Your Data

Image Source: unsplash

The small lock icon in the browser address bar signifies a secure connection, backed by complex security mechanisms in operation. Google’s Transparency Report shows that the proportion of encrypted network traffic worldwide has grown to 95%. Understanding these mechanisms can be likened to sending a confidential letter.

Encryption technology is like locking the letter to ensure content confidentiality. Authentication mechanisms are like verifying the sender’s signature and seal to confirm their true identity.

These two functions are indispensable. Encryption technology and authentication mechanisms must work together to jointly build the security defense line of the digital world.

Key Takeaways

  • Encryption technology and authentication mechanisms jointly protect data security; encryption technology safeguards data confidentiality, while authentication mechanisms confirm identity authenticity.
  • Symmetric encryption is fast and suitable for large data volumes, but key distribution is difficult; asymmetric encryption uses public and private keys to solve the key distribution problem.
  • Hash functions serve as digital fingerprints for data to verify integrity; digital signatures combine hash and asymmetric encryption to confirm identity and prevent repudiation.
  • Digital certificates are issued by authoritative institutions to verify public key authenticity, building a trust network.
  • HTTPS combines encryption and authentication mechanisms through certificate verification, key negotiation, and data encryption to ensure secure network communication and data integrity.

Decrypting Core Encryption Technologies

Decrypting Core Encryption Technologies

Image Source: unsplash

Encryption technology is the cornerstone of digital security, mainly divided into two categories: symmetric encryption and asymmetric encryption. They differ in principles and application scenarios.

Symmetric Encryption: Efficient Single-Key System

Symmetric encryption can be compared to using the same key to lock and unlock a door. In this mode, encryption and decryption of information share the same key.

Its greatest advantage is speed and low computational overhead, making it ideal for encrypting large amounts of data. Therefore, many systems rely on it to secure data. Common application scenarios include:

  • Full disk encryption: For example, Windows BitLocker or macOS FileVault.
  • Database encryption: Protecting massive information stored in databases.
  • File encryption: Encrypting individual files or folders.

The Advanced Encryption Standard (AES) is currently the most popular and widely used symmetric encryption algorithm. Besides AES, various algorithms are available that support different key lengths.

Algorithm Key Length (bits)
AES 128, 192, 256
ChaCha20 128, 256
SM4 128

Core Challenge: Although symmetric encryption is efficient, its core difficulty lies in “secure key distribution.” How to safely deliver this unique key to the recipient without it being intercepted en route is a huge challenge.

Asymmetric Encryption: Innovative Public-Private Key System

To solve the key distribution problem, asymmetric encryption technology emerged. It cleverly uses a pair of keys: a public key and a private key.

This system is like a combination of a “public mailbox (public key) and private key (private key).”

  • Public key can be shared with anyone, like the mailbox drop slot; anyone can use it to encrypt information (drop a letter).
  • Private key is kept by the owner, like the mailbox key; only the holder can open the mailbox and decrypt the information.

The public and private keys are mathematically paired; data encrypted with the public key can only be decrypted with the corresponding private key. This mechanism perfectly solves the key distribution issue since transmitting the public key requires no secrecy.

RSA is the classic asymmetric encryption algorithm. In recent years, Elliptic Curve Cryptography (ECC) has gained favor for its higher efficiency. For the same security strength, ECC requires much smaller key sizes than RSA, resulting in faster encryption operations and lower resource consumption.

This efficiency makes ECC particularly suitable for mobile devices and IoT devices with limited computing power. Asymmetric encryption is not only used for data encryption but also plays a key role in identity verification and key exchange.

Analyzing Key Authentication Mechanisms

Analyzing Key Authentication Mechanisms

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If encryption technology locks the data, authentication mechanisms verify the sender’s identity and check if the envelope is intact. They ensure the trusted party is genuine and the information has not been tampered with during transmission. These mechanisms primarily rely on hash functions, digital signatures, and digital certificates.

Hash Functions: Digital Fingerprints of Data

A hash function is an algorithm that converts data of any length into a fixed-length string of characters. This string is called the hash value or “digital fingerprint.” It has two key properties:

  • One-way: The original data cannot be reverse-engineered from the hash value.
  • Uniqueness: Any tiny change in the original data results in a completely different hash value.

This property makes it ideal for verifying data integrity. If two data pieces have identical hash values, we can be certain their contents are the same. Currently, the SHA-2 and SHA-3 series are mainstream hash algorithms.

Security Warning: Using outdated hash algorithms (like MD5 and SHA-1) poses significant risks. In 2017, Google successfully created the world’s first public SHA-1 collision via the “SHAttered” attack, proving it is no longer secure.

Digital Signatures: Confirming Identity and Preventing Repudiation

Digital signatures cleverly combine hash functions and asymmetric encryption to achieve identity authentication and prevent repudiation.

The creation process is as follows:

  1. The sender first hashes the original message to get a unique “digital fingerprint.”
  2. Then, the sender uses their private key to encrypt this hash value. The encrypted hash is the digital signature.

During verification, the recipient uses the sender’s public key to decrypt the signature and obtain the original hash value. The recipient then hashes the received message again. If the two hash values match, it proves:

  • Identity authenticity: Only the private key holder could generate the signature.
  • Content integrity and non-repudiation: The message was not altered, and the sender cannot deny sending it.

Digital Certificates: Authoritative Identity Authentication (PKI)

How do we trust that a public key truly belongs to the claimed website or individual? This is what digital certificates solve.

Digital certificates are like “digital IDs” issued by authoritative institutions. These institutions are called Certificate Authorities (CA), such as Let’s Encrypt, DigiCert. The CA verifies the applicant’s true identity, then packages the applicant’s public key, identity information (like website domain), and other details, signing them with the CA’s own private key.

A standard X.509 certificate typically includes the following information:

  • Subject: The certificate holder’s name (e.g., www.google.com).
  • Issuer: The name of the CA issuing the certificate.
  • Validity: The certificate’s start and end dates.
  • Subject’s Public Key: The public key bound to the subject.

By trusting a few top-level CAs, we can trust all certificates they issue, forming a vast trust network called Public Key Infrastructure (PKI).

Practical Analysis: How HTTPS Coordinates Encryption and Authentication

Theoretical knowledge ultimately serves practice. HTTPS (Hypertext Transfer Protocol Secure) is the best example of encryption and authentication mechanisms working together. The websites we visit daily, especially financial service sites handling sensitive information, rely on it for security. Below, we analyze a complete HTTPS communication flow to show how each technology interlocks to build a robust data security defense.

Step One: Certificate Verification and Identity Confirmation

When a browser connects to a site starting with https://, the handshake’s first step is confirming the server’s identity. This is like verifying official ID before a major transaction.

The browser requests the server’s SSL/TLS certificate. Upon receipt, the browser performs a strict verification process:

  1. Verify certificate integrity: The browser uses public key technology to check if the digital signature on the certificate is valid. An invalid signature indicates possible tampering post-issuance.
  2. Verify certificate validity period: The browser checks if the current date falls within the certificate’s start and end dates. Expired certificates are rejected outright.
  3. Check certificate revocation status: The browser queries the Certificate Revocation List (CRL) published by the CA. If the certificate is revoked for security reasons, the connection is terminated.

Security Warning: Consequences of Invalid Certificates If certificate verification fails, the browser immediately warns the user of an insecure connection. This typically leads to:

For cross-border payment and trading applications, encryption and certificates are not just technical options but core business dependencies. The multi-asset wallet BiyaPay is a typical example: it connects user scenarios such as crypto remittance, US and Hong Kong stock trading, and digital asset spot and derivatives within one environment, while also interfacing with major fiat and digital asset settlement channels.

To support these flows, the platform relies on HTTPS and encrypted transport between client and backend, together with strict certificate lifecycle management and access control, in order to align with regulatory expectations under licenses such as the U.S. MSB and New Zealand FSP registrations and to keep transaction and identity data under consistent protection.

End users do not need to follow every cryptographic detail, but they can make better use of these mechanisms through a few simple habits. When visiting the official BiyaPay site, using its FX converter to estimate funding costs, or checking beneficiary details via the built-in SWIFT lookup and IBAN lookup, they should always verify the domain, confirm the lock icon is present, and enable strong passwords plus 2FA on their accounts.

In practice, this allows the platform’s encryption and authentication design to work together with the user’s security posture, reducing the risk of data leakage or unauthorized access across login, funding, and trading operations.

Step Two: Asymmetric Encryption for Session Key Negotiation

After confirming the server’s identity is trustworthy, both parties negotiate a “temporary password” for this session only. This process cleverly uses asymmetric encryption.

The client (browser) generates a random value called the “pre-master secret”. It then encrypts this pre-master secret using the public key from the server’s certificate and sends it to the server. Only the legitimate server with the matching private key can decrypt the message and obtain the original pre-master secret.

At this point, both client and server possess three identical key pieces of information: client random, server random, and pre-master secret. Using these and a pre-agreed algorithm, both independently compute the exact same “session key.”

Notably, modern HTTPS connections commonly use more secure key exchange algorithms to achieve “forward secrecy” (Forward Secrecy).

Key Exchange Algorithm Forward Secrecy Description
RSA ❌ Not supported If the server private key is compromised, historical communication data may be fully decrypted.
DHE/ECDHE ✅ Supported Generates temporary key pairs per session; even if the main private key leaks, past sessions remain secure.

This “burn after reading” temporary key mechanism ensures that even if a key leaks in the future, past communications remain unaffected.

Step Three: Symmetric Encryption Secures Communication Content

Why negotiate a symmetric session key after already having asymmetric encryption? The answer is: efficiency.

Asymmetric encryption has huge computational overhead and is relatively slow, unsuitable for encrypting large volumes of web content, images, videos, etc. In contrast, symmetric encryption is hundreds to thousands of times faster, ideal for high-intensity bulk data encryption.

Thus, HTTPS adopts a hybrid encryption strategy:

  • Asymmetric encryption: Used only in the handshake phase to securely negotiate the session key.
  • Symmetric encryption: Used for all subsequent data transmission to ensure efficiency and security.

Modern HTTPS connections widely use advanced symmetric algorithms like [AES-256-GCM](https://petadot.com/blog/aes-256-gcm/). It offers high encryption strength, and its GCM (Galois/Counter Mode) simultaneously provides data encryption and integrity verification, balancing performance and security.

Step Four: Hash Verification Ensures Information Integrity

Encryption prevents eavesdropping, but how to stop data tampering in transit? This requires hash-based message authentication codes (MAC).

HTTPS widely uses HMAC (Hash-based Message Authentication Code). Its workflow is:

  1. Before sending data, the sender uses the shared session key and message content with a hash function (e.g., SHA-256) to compute an HMAC value.
  2. This HMAC value is appended to the encrypted message and sent to the recipient.
  3. Upon receipt, the recipient independently computes an HMAC value using the same session key and message content.
  4. Finally, the recipient compares their computed HMAC with the received one.

If the values match exactly, it proves the data was not tampered with in transit. This verification runs throughout the session, ensuring every message’s integrity and authenticity.

In summary, encryption technology locks data to ensure confidentiality. Authentication mechanisms verify signatures and seals to guarantee authenticity, integrity, and non-repudiation. Together, they form a complete digital security system. Applying this knowledge daily can significantly enhance personal data security.

FAQ

What is the essential difference between HTTP and HTTPS?

HTTP transmits data in plaintext; any intermediary can eavesdrop or tamper. HTTPS uses SSL/TLS protocol for encryption and verification. It ensures data transmission confidentiality, integrity, and server identity authenticity, making it the standard for modern network security.

Is using HTTPS absolutely secure?

HTTPS greatly enhances data transmission security but is not foolproof. Security is a complete system. If the website server has vulnerabilities or the user’s device is infected with malware, data remains at risk. Comprehensive security measures are crucial.

Why is two-factor authentication needed even with a strong password?

Passwords address “what you know,” while two-factor authentication (2FA) adds the “what you have” (e.g., phone verification code) dimension. Even if the password leaks, attackers cannot log in without your phone. This greatly strengthens account security.

What does end-to-end encryption mean?

End-to-end encryption (E2EE) is a higher-level security measure. It ensures only the sender and recipient can read the information. Even the service provider (e.g., messaging app company) cannot decrypt or view content, providing the strongest privacy protection for users.

*This article is provided for general information purposes and does not constitute legal, tax or other professional advice from BiyaPay or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or warranties, express or implied, as to the accuracy, completeness or timeliness of the contents of this publication.

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