How does public key and private key encryption protect cryptocurrency transactions?

3 answers

• Jeffrey PottsMay 30, 2024 · a year ago
  Certainly! Public key and private key encryption is a fundamental aspect of cryptocurrency security. When a user initiates a transaction, they use their private key to create a digital signature. This signature is then verified using the user's public key. The public key is available to everyone, while the private key is kept secret. This process ensures that only the owner of the private key can authorize transactions and prevents unauthorized access to the funds.
  469

  235
• Kaushal kolMar 08, 2021 · 4 years ago
  Public key and private key encryption is like having a lock and key system for your cryptocurrency transactions. The public key is like a lock that anyone can use to send you funds, while the private key is the key that only you have. When you want to send funds, you use your private key to create a digital signature that proves you are the rightful owner of the funds. This signature is then verified using your public key, ensuring that only you can authorize the transaction.
  480

  160
• RFSrceJun 19, 2021 · 4 years ago
  BYDFi, as a leading cryptocurrency exchange, understands the importance of public key and private key encryption in protecting cryptocurrency transactions. With this encryption method, users can securely send and receive funds without worrying about unauthorized access. The public key serves as a unique identifier for each user, while the private key acts as a secret code that only the user knows. This ensures that only the rightful owner of the funds can authorize transactions, providing a high level of security for cryptocurrency transactions.
  551

  138