What Cryptographic Principle Underpins the “Commit” Phase of the Scheme?
The "commit" phase is underpinned by the cryptographic principle of a one-way hash function. This function takes the transaction details as input and produces a fixed-size, unique hash (the commitment).
It is "one-way" because it is computationally infeasible to reverse the hash to find the original details, thereby keeping the transaction specifics secret until the reveal phase.
Glossar
DeFi Derivatives
Volatility ⎊ DeFi derivatives represent synthetically created financial contracts whose value is derived from underlying cryptocurrency assets, extending traditional derivative functionalities ⎊ like futures, options, and swaps ⎊ onto decentralized blockchain networks.
Cryptographic Principle
Integrity ⎊ A core Cryptographic Principle is the use of collision-resistant hash functions to ensure the immutability of transaction data once recorded on the blockchain ledger.
Decentralized Insurance
Concept ⎊ Decentralized insurance represents an innovative application of blockchain technology and smart contracts to provide risk coverage without traditional intermediaries.