How does the use of public key and private key ensure the security of digital currency?

3 answers

• Guido TesiJan 11, 2023 · 3 years ago
  The use of public key and private key is a fundamental aspect of securing digital currency transactions. When a user wants to send digital currency to another user, they use their private key to create a digital signature. This digital signature is unique to the transaction and is created by encrypting the transaction details with the private key. The recipient can then use the sender's public key to decrypt the digital signature and verify the authenticity of the transaction. This ensures that only the intended recipient can access the digital currency and prevents unauthorized tampering or counterfeiting of transactions.
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• I'd sSep 19, 2024 · 10 months ago
  Digital currency security relies on the use of public key and private key pairs. The public key is available to everyone and is used to encrypt transactions, while the private key is kept secret and is used to decrypt the transactions. This asymmetric encryption ensures that only the intended recipient can access the digital currency. Additionally, the use of digital signatures created with the private key provides a way to verify the authenticity of transactions. By combining these mechanisms, digital currency transactions can be securely conducted without the need for a central authority.
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• Kjeldsen SteensenSep 01, 2021 · 4 years ago
  Using public key and private key cryptography is a crucial part of securing digital currency. When a user wants to send digital currency, they use their private key to create a digital signature. This digital signature is then attached to the transaction, providing proof of authenticity. The recipient can use the sender's public key to verify the digital signature and confirm that the transaction was indeed sent by the sender. This ensures the security of digital currency by preventing unauthorized access and tampering of transactions. At BYDFi, we also implement additional security measures to protect our users' digital assets.
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