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Confidentiality, Integrity, and Authentication (CIA) is the key concern for every network security architect when designing security topologies. The first deals with securing the transit data itself, the second deals with securing the transit data from tampering with, and the third deals with securing the data from unauthorized access. Hashing and encryption are processes that solve these issues.
Hashing is a process to maintain integrity of data while encryption is process of maintaining confidentiality of data.
Hashing requires you to use hashing algorithm like MD5 / SHA.
On sender side
The raw data is hashed by using one of the algo's and then sent over to other side with raw data and its hashed value.
On received side
The receiver receives the data and calculates the hash value again using the same algo as done previously (The algo to be used for the process is already communicated ). This new value is compared with the old value sent by the sender and if it is the same, indicates that the data was not hampered in transit and integrity is maintained.
While encryption on the other hand is used to provide confidentiality, meaning the data is not readable by unauthorised person
For encryption to work, it requires one of encryption algo DES,3DES, RSA, DSA, or AES The encryption has2 mode block mode and stream mode.
The sender uses a key to encrypt (lock) the data and sends the encrypted data over an covert channel. During the transit only the person authorised will be able to get the data in readable format even if the data is wire taped.
On receiver side, the data is unencrypted/decrypted (unlocked) by using the same key it was locked if symmetric algo is used ( the one specified above are symmetric in nature except for RSA and DSA) and with a different key if asymmetric algo is used ( e.g. RSA or DSA).
For efficient communication both Encryption and hashing should be used to maintain the CIA triad.
cryptography: to protect data from reading ,just how have decrypting password :DES AES RSA RC4
hashing: to guarantee the data not change in network :SHA-1 MD5
Encryption is reversible through decryption and hashing is not
hashing is a one way function (irreversible) used to provide integrity to transmitted data
Encryption is a function used to provide confusion and diffusion to the data so that it will be very hard mathematically or computationally to guess what is the data.
valuable (sensitive) data must be encrypted to maintain its confidentiality
any data can be hashed to prove that the data is genuine and has never been tampered or missed with.