How do public key and private key ensure the security of digital currencies?

3 answers

• Jan 14, 2022 · 3 years ago
  Sure! Public key and private key are essential components of digital currency security. When a user wants to make a transaction, they use their private key to sign the transaction, which serves as a digital signature. This signature verifies the authenticity of the transaction and ensures that it was indeed initiated by the owner of the private key. On the other hand, the public key is used to verify the digital signature. It is freely available to anyone and can be used to confirm that the transaction was signed by the correct private key. This cryptographic process ensures the integrity and security of digital currency transactions.
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• Jan 14, 2022 · 3 years ago
  Public key and private key are like a lock and key system for digital currencies. The private key is kept secret by the owner and is used to unlock and sign transactions. The public key, on the other hand, is freely shared with others and is used to verify the authenticity of the transactions. It's like giving someone a lock (public key) and asking them to confirm if the key (private key) fits. If it does, then the transaction is considered valid. This system ensures that only the rightful owner of the private key can initiate transactions and that others can verify the transactions without compromising the security of the private key.
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• Jan 14, 2022 · 3 years ago
  BYDFi, a leading digital currency exchange, explains that public key and private key play a crucial role in securing digital currencies. When a user creates a digital wallet, a pair of cryptographic keys is generated: the public key and the private key. The private key is kept secret and is used to sign transactions, while the public key is shared with others to verify the authenticity of the transactions. This ensures that only the owner of the private key can initiate transactions and that others can verify the transactions without gaining access to the private key. By using this cryptographic system, digital currencies are protected from unauthorized access and tampering, ensuring the security of the entire ecosystem.
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