Why cryptography is critical
Beyond their shared etymology related to something “hidden” or “secret”, cryptocurrency and cryptography are very intertwined. Cryptography’s mathematical and technological innovations underpin the entire crypto industry. The Bitcoin white paper makes this clear by introducing a cryptographic protocol in place of a trusted third party to validate transactions. This shift makes decentralization possible by “allowing any two willing parties to transact directly.”
Cryptography is essential to enabling transactions that are anonymous, secure, and “trustless.” The final point is the least obvious and perhaps most important. You don’t need a bank, credit card company, government, or other third-party intermediary since cryptographic tools such as public-private key encryption provide secure, direct confirmation.