Hoskinson Explains Hash vs Lattice-Based Cryptography

Charles Hoskinson Highlights Hashing vs Encryption as Post-Quantum Standards Take Shape

Cardano founder Charles Hoskinson has drawn attention to core cryptography concepts—specifically the difference between hashing and encryption—in a discussion framed around practical security choices, password storage, and the emerging risks posed by quantum computing.

The remarks centered on when developers and users should rely on hashing versus encryption, and why the distinction matters. Hashing is typically used to create a one-way fingerprint of data, while encryption is designed to protect information that must later be recovered by an authorized party. In everyday security practice, that difference becomes especially important in areas like password handling, where storing passwords in encrypted form can be risky compared with using appropriate hashing approaches.

Hoskinson’s focus on “cryptography basics” comes as the industry continues to digest major developments in post-quantum cryptography. The U.S. National Institute of Standards and Technology (NIST) has moved to standardize new algorithms intended to remain secure even if large-scale quantum computers become capable of breaking widely used public-key systems.

Among the first post-quantum algorithms standardized by NIST are two lattice-based designs: CRYSTALS-Kyber and CRYSTALS-Dilithium. These selections reflect a broader shift toward cryptographic constructions believed to be more resilient against quantum attacks than many of today’s mainstream schemes.

The wider post-quantum landscape also includes alternative families of cryptography. One example is the Rainbow scheme, tied to the “Unbalanced Oil and Vinegar” approach, which is based on the difficulty of solving systems of multivariate equations. Mentioning these systems underscores that post-quantum efforts are not limited to a single mathematical strategy, even as lattice-based designs have taken an early lead in standardization.

For crypto and blockchain ecosystems, the topic matters because cryptography underpins everything from wallet security to transaction signatures and identity systems. The combination of basic operational guidance—when to hash, when to encrypt—and the steady march toward post-quantum standards reflects a growing emphasis on both immediate security hygiene and longer-term resilience.