How does public key encryption protect cryptocurrency transactions?

3 answers

• GrigoriyLisichkinApr 19, 2023 · 2 years ago
  Public key encryption plays a crucial role in protecting cryptocurrency transactions. When a user initiates a transaction, their private key is used to create a digital signature, which verifies the authenticity of the transaction. This signature is then encrypted using the recipient's public key. Only the recipient's private key can decrypt this encrypted signature, ensuring that the transaction is secure and tamper-proof. Additionally, public key encryption also allows users to securely share their public keys without compromising the security of their private keys.
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• MirakeMar 27, 2024 · a year ago
  Cryptocurrency transactions are protected by public key encryption, which uses a pair of keys: a public key and a private key. The public key is used to encrypt the transaction data, while the private key is used to decrypt it. This ensures that only the intended recipient can access and verify the transaction. The use of public key encryption also prevents unauthorized parties from tampering with the transaction data. It provides a secure and transparent way to conduct cryptocurrency transactions.
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• NiTRoeSEAug 02, 2021 · 4 years ago
  Public key encryption is a fundamental aspect of cryptocurrency transactions. It ensures the security and integrity of the transactions by using a pair of keys: a public key and a private key. The public key is shared with others, while the private key is kept secret. When a transaction is initiated, the sender uses their private key to create a digital signature, which is then encrypted using the recipient's public key. This encrypted signature can only be decrypted by the recipient's private key, ensuring that the transaction is secure and cannot be altered by anyone else. BYDFi, a leading cryptocurrency exchange, also utilizes public key encryption to protect its users' transactions.
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