Cryptography Basics — Encryption, Hashing, and Signing

Overview

Cryptography is the foundation of digital security. Whether you are storing passwords, transmitting data over TLS, or signing API requests, you are using cryptography. Understanding the primitives — encryption, hashing, and signing — and when to use each prevents a class of vulnerabilities that no framework can protect against. This guide walks through the essential concepts every developer needs without requiring a mathematics degree.

When to Use

• For alternatives, see Encryption at Rest: AES-256, KMS, Envelope Encryption.

• You need to protect data at rest or in transit

• You are implementing authentication or authorization

• You need to verify the integrity or origin of data

• You are choosing between cryptographic libraries or algorithms

Symmetric Encryption

The same key encrypts and decrypts. Fast and suitable for bulk data.

AES (Advanced Encryption Standard)

from cryptography.fernet import Fernet

# Generate a key
key = Fernet.generate_key()
cipher = Fernet(key)

# Encrypt
token = cipher.encrypt(b"sensitive data")

# Decrypt
data = cipher.decrypt(token)

Mode	Use Case	Security
AES-GCM	Most applications	Authenticated encryption
AES-CBC	Legacy compatibility	Needs HMAC for integrity
AES-CTR	Streaming data	Needs careful IV handling

Key Management

• Never hardcode keys; use a key management service (KMS)
• Rotate keys periodically (annually or on suspected compromise)
• Separate keys by environment and purpose

Asymmetric Encryption

Two keys: a public key encrypts, a private key decrypts. Used for key exchange and digital signatures.

RSA

from cryptography.hazmat.primitives import serialization
from cryptography.hazmat.primitives.asymmetric import rsa, padding
from cryptography.hazmat.primitives import hashes

# Generate key pair
private_key = rsa.generate_private_key(public_exponent=65537, key_size=2048)
public_key = private_key.public_key()

# Encrypt with public key
encrypted = public_key.encrypt(
    b"secret message",
    padding.OAEP(mgf=padding.MGF1(algorithm=hashes.SHA256()), algorithm=hashes.SHA256(), label=None)
)

# Decrypt with private key
decrypted = private_key.decrypt(
    encrypted,
    padding.OAEP(mgf=padding.MGF1(algorithm=hashes.SHA256()), algorithm=hashes.SHA256(), label=None)
)

Elliptic Curve (ECDH/ECDSA)

Faster and smaller keys than RSA at equivalent security.

from cryptography.hazmat.primitives.asymmetric import ec

private_key = ec.generate_private_key(ec.SECP256R1())
public_key = private_key.public_key()

Hashing

One-way functions that produce a fixed-size fingerprint. Used for passwords, data integrity, and checksums.

Secure Hashing Algorithms

Algorithm	Output Size	Status
SHA-256	256 bits	Recommended
SHA-3	Variable	Recommended
BLAKE3	256 bits	Fast, modern
MD5	128 bits	Broken, do not use
SHA-1	160 bits	Broken, do not use

import hashlib

# SHA-256
digest = hashlib.sha256(b"data").hexdigest()

# For passwords: use Argon2id, bcrypt, or scrypt — not SHA-256

Password Hashing

import bcrypt

hashed = bcrypt.hashpw(password.encode(), bcrypt.gensalt(rounds=12))

Digital Signatures

Prove authenticity and integrity of a message.

from cryptography.hazmat.primitives.asymmetric import padding, rsa
from cryptography.hazmat.primitives import hashes, serialization

# Sign
signature = private_key.sign(
    message,
    padding.PSS(mgf=padding.MGF1(hashes.SHA256()), salt_length=padding.PSS.MAX_LENGTH),
    hashes.SHA256()
)

# Verify
public_key.verify(
    signature,
    message,
    padding.PSS(mgf=padding.MGF1(hashes.SHA256()), salt_length=padding.PSS.MAX_LENGTH),
    hashes.SHA256()
)

Transport Layer Security (TLS)

TLS uses asymmetric encryption for key exchange, then symmetric encryption for the session.

Client                           Server
  │                                 │
  │ ─────── Client Hello ───────▶ │
  │ ◀────── Server Hello ─────── │
  │ ◀──── Certificate + Key Exchange
  │ ───── Client Key Exchange ───▶ │
  │ ───── [Encrypted Handshake]──▶│
  │                                 │
  │ ←──── Symmetric Session ─────▶ │

What works:

• Use TLS 1.3; disable TLS 1.0 and 1.1
• Enable HSTS (HTTP Strict Transport Security)
• Use certificate pinning for mobile apps
• Monitor certificate expiry (30, 14, 7 days before)

Common Mistakes

• Rolling your own crypto — use well-vetted libraries (libsodium, OpenSSL, Bouncy Castle)
• Using ECB mode — patterns in plaintext leak through ciphertext
• Reusing IVs/nonces — destroys confidentiality in stream modes
• Storing keys with data — keys should be in a separate trust boundary
• Ignoring side-channel attacks — timing and power analysis can leak keys

Troubleshooting

• Authentication bypass in tests: ensure test users cannot reach production endpoints. Use separate credentials and environments for CI.
• False positives in scanning tools: tune rules against the risk profile. Distinguish between reachable vulnerabilities and theoretical issues.
• Secrets appear in logs: configure log filters to redact tokens, passwords, and keys. Audit log sinks for sensitive patterns.
• CSP breaks legitimate functionality: use report-only mode first, then enforce. Iterate on allowed sources based on real violations.
• Incident response stalls: run tabletop exercises. Document escalation paths, evidence collection steps, and communication templates in advance.

FAQ

What is the difference between encryption and hashing? Encryption is reversible (two-way); hashing is one-way. You encrypt data you need to read later; you hash data you only need to compare (passwords).

Should I use AES-256 or AES-128? AES-128 is secure for most purposes. AES-256 adds a margin of safety against quantum computing advances but is slightly slower.

What is authenticated encryption? Authenticated encryption (like AES-GCM) provides both confidentiality and integrity. Without it, attackers can tamper with ciphertext.

How do I get started with this in an existing project?

Start with a small, isolated part of your codebase. Apply the concepts from this guide to one module or service. Measure the impact, then expand to other areas.

What tools do I need?

The tools mentioned throughout this guide are listed in each section. Most are open-source and widely adopted. Check the related resources for setup instructions.

How do I measure success after implementing this?

Define clear metrics before starting: performance benchmarks, error rates, or maintainability indicators. Compare before and after. Iterate based on the data, not on assumptions.

Advanced Topics

Scenario: Data Encryption in a Fintech App

System: Fintech app, handles transactions and PII
Requirements: Encryption in transit + at rest + field-level

Encryption layers:
  | Layer | Technology | Purpose |
  |-------|-----------|---------|
  | Transit | TLS 1.3 | Encrypt network communication |
  | At rest (DB) | AES-256-GCM | Encrypt disk/volume |
  | Field-level | AES-256-GCM + envelope | Encrypt sensitive fields |
  | Backups | AES-256 + KMS | Encrypt backups |
  | Secrets | KMS + rotation | Rotate keys automatically |

Envelope encryption (field-level):
  1. Generate random Data Encryption Key (DEK) (256 bits)
  2. Encrypt sensitive field with DEK (AES-256-GCM)
  3. Encrypt DEK with Key Encryption Key (KEK) via KMS
  4. Store: ciphertext + encrypted DEK
  5. To decrypt: ask KMS to decrypt DEK, then decrypt field

```javascript
// Envelope encryption with AWS KMS (Node.js)
const { KMSClient, EncryptCommand, DecryptCommand } = require("@aws-sdk/client-kms");
const crypto = require("crypto");

async function encryptField(plaintext, kmsKeyId) {
  // 1. Generate DEK
  const dek = crypto.randomBytes(32);
  const iv = crypto.randomBytes(12);

  // 2. Encrypt data with DEK (AES-256-GCM)
  const cipher = crypto.createCipheriv("aes-256-gcm", dek, iv);
  const ciphertext = Buffer.concat([cipher.update(plaintext, "utf8"), cipher.final()]);
  const authTag = cipher.getAuthTag();

  // 3. Encrypt DEK with KMS (KEK)
  const kms = new KMSClient();
  const response = await kms.send(new EncryptCommand({
    KeyId: kmsKeyId,
    Plaintext: dek,
  }));

  // 4. Store: encrypted DEK + IV + authTag + ciphertext
  return {
    encryptedDek: response.CiphertextBlob.toString("base64"),
    iv: iv.toString("base64"),
    authTag: authTag.toString("base64"),
    ciphertext: ciphertext.toString("base64"),
  };
}

async function decryptField(encrypted) {
  // 1. Decrypt DEK via KMS
  const kms = new KMSClient();
  const response = await kms.send(new DecryptCommand({
    CiphertextBlob: Buffer.from(encrypted.encryptedDek, "base64"),
  }));
  const dek = response.Plaintext;

  // 2. Decrypt data with DEK
  const decipher = crypto.createDecipheriv(
    "aes-256-gcm", dek, Buffer.from(encrypted.iv, "base64")
  );
  decipher.setAuthTag(Buffer.from(encrypted.authTag, "base64"));
  const plaintext = Buffer.concat([
    decipher.update(Buffer.from(encrypted.ciphertext, "base64")),
    decipher.final()
  ]);
  return plaintext.toString("utf8");
}

Lessons:

• Never use the same key for everything
• Envelope encryption: DEK for data, KEK for DEK
• KMS rotates KEKs automatically
• AES-256-GCM: authenticated encryption (confidentiality + integrity)
• Never store DEK in plaintext
• IV must be unique per encryption (never reuse)

### When do I use symmetric vs asymmetric encryption?

Use symmetric (AES) for encrypting data at rest and large volumes: it is fast and secure. Use asymmetric (RSA, ECC) for key exchange, digital signatures, and authentication: it does not require sharing a secret key. In practice, they are combined: asymmetric to exchange DEK, symmetric to encrypt data (envelope encryption).

## Common Production Pitfalls

- Treating the guide as a checklist to complete once rather than a practice to evolve.
- Adopting every recommendation at once instead of starting with one measured change.
- Skipping the maturity assessment and forcing advanced practices on an unprepared team.
- Not updating runbooks and on-call expectations as new practices are introduced.
- Ignoring real incident data when prioritizing which parts of the guide to apply first.
- Failing to assign an owner who reviews decisions quarterly.
- Copying examples without adapting them to the team's actual tooling and constraints.
- Forgetting to measure outcomes before adding the next improvement.