THE ROLE OF CRYPTOGRAPHY IN THE DEVELOPMENT OF A NATIONAL DIGITAL CURRENCY: DATA PROTECTION AND ADVANTAGES OF BLOCKCHAIN TECHNOLOGY UTILIZATION

Abstract

The role of cryptography in the development of a national digital currency and its significance in data protection, as well as the advantages of using blockchain technology, will be considered. The main principles of cryptography, such as symmetric and asymmetric encryption, digital signatures, and hashing, will be examined. Attention will be paid to their importance in protecting data from unauthorized access and tampering. The basic principles of blockchain, such as decentralization, reliability, transparency, and data immutability, will be discussed. It will be explored how blockchain technology can ensure the security and efficiency of processes involving the use of a national digital currency. As a result of the research, the importance of cryptography in the development of a national digital currency and the advantages of using blockchain technology to ensure data security and the effective functioning of the financial system will be emphasized.