How does public key encryption work in the context of cryptocurrency transactions?

3 answers

• KarkarichJul 31, 2024 · a year ago
  Public key encryption is a fundamental aspect of cryptocurrency transactions. It involves the use of two 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 read the transaction details. The public key is shared openly, allowing anyone to encrypt data that can only be decrypted by the corresponding private key. This provides security and confidentiality in cryptocurrency transactions.
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• Sayant SunilJul 26, 2024 · a year ago
  Public key encryption in cryptocurrency transactions works like a lock and key system. The public key acts as the lock, and the private key acts as the key. When a transaction is initiated, the sender uses the recipient's public key to encrypt the transaction data. Only the recipient, who possesses the corresponding private key, can decrypt and access the transaction details. This ensures that the transaction remains secure and only the intended recipient can access the information.
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• Reina BaginaApr 06, 2021 · 4 years ago
  In the context of cryptocurrency transactions, public key encryption plays a crucial role in ensuring the security and integrity of the transaction data. When a transaction is initiated, the sender uses the recipient's public key to encrypt the transaction details. This encrypted data can only be decrypted using the recipient's private key. This ensures that only the intended recipient can access and read the transaction information, providing confidentiality and security. Public key encryption is a key component of the cryptographic protocols used in cryptocurrencies like Bitcoin and Ethereum.
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