How does the 'pay to public key hash' mechanism work in digital currency transactions?

3 answers

• Cooper HammerDec 07, 2022 · 3 years ago
  Sure! The 'pay to public key hash' mechanism is a way to secure digital currency transactions. When you want to send funds to someone, you use their public key hash instead of their actual public key. This adds an extra layer of security, as the public key hash is derived from the public key but cannot be used to reverse-engineer the original key. This way, even if someone intercepts the transaction, they won't be able to determine the recipient's public key and access their funds. It's a clever way to protect the privacy and security of digital currency transactions.
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• Fiantso HarenaDec 25, 2021 · 4 years ago
  The 'pay to public key hash' mechanism is commonly used in digital currency transactions to ensure the security and privacy of the parties involved. When you initiate a transaction, you provide the recipient's public key hash instead of their actual public key. This hash is derived from their public key using a cryptographic algorithm. By using the hash instead of the actual key, the transaction remains secure even if it is intercepted by a third party. The recipient can then use their private key to access the funds associated with the public key hash. It's an effective way to prevent unauthorized access to digital currency funds.
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• The AhmedAug 12, 2020 · 5 years ago
  The 'pay to public key hash' mechanism is an important part of digital currency transactions. When you want to send funds to someone, you use their public key hash, which is a shorter and more secure representation of their public key. The public key hash is generated by applying a hash function to the public key. This ensures that the recipient's actual public key remains private and cannot be easily reverse-engineered from the hash. When the recipient wants to access the funds, they can use their private key to prove ownership of the public key hash and unlock the funds. It's a clever mechanism that adds an extra layer of security to digital currency transactions.
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