Top-tier crypto exchange entity Coinbase reportedly disclosed details regarding the development of a novel cryptographic library – dubbed “Kryptology” – carrying tools supporting blockchain engineers. 

Specifically, the Kryptology library will reportedly offer data regarding secure, audited and easy-to-use APIs, together with a repository of usually faced problems and lessons learned throughout the history of crypto.

Without cryptography, crypto like Bitcoin would function as digital lines of code that can be copy/paste by any individual, leaving it vulnerable to replication and falsification, ultimately resulting in major issues, nominally currency double-spending. 

Recent innovations reportedly include Boneh–Lynn–Shacham (BLS) signature – employed to execute the verification of senders’ identities and validation of transactions, while making sure the information receives safekeeping. 

Another recent adoption is the Shamir Secret Sharing (SSS) algorithm, which divides a secret value among multiple participants, dubbed shareholders, who must collaborate to reconstruct the secret.

The setup will reportedly be an appropriate method for keeping private keys holding entrance to DeFi pools safe, as well as smart contracts that lock a big amount of funds.

An additional advancement is zero-knowledge proofs, which guarantees encrypted messages can be passed on and validated without disclosing the underlying personal information – which is a suitable measure applicable for complex DeFi applications.

Lastly, the development of new elliptic curves, nominally Pasta, could also offer potential improvements to crypto wallets.

A key aspect of cryptography innovation is in privacy coins, which can help users steer clear from tracking by blockchain forensic firms and prevent outside participants from viewing their transaction details.