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How does public key encryption ensure the security of cryptocurrency transactions?

avatarnurulgepeDec 25, 2021 · 3 years ago1 answers

Can you explain how public key encryption is used to ensure the security of cryptocurrency transactions? How does it protect against fraud and unauthorized access?

How does public key encryption ensure the security of cryptocurrency transactions?

1 answers

  • avatarDec 25, 2021 · 3 years ago
    Public key encryption is a fundamental component of cryptocurrency security. It ensures that only the intended recipient can access and decrypt the transaction data. Each user has a unique pair of keys: a public key, which is shared with others, and a private key, which is kept secret. When a user wants to send a transaction, they use the recipient's public key to encrypt the data. The encrypted data can only be decrypted using the recipient's private key, ensuring that only the intended recipient can access and read the transaction. This prevents fraud and unauthorized access, as only the recipient with the correct private key can decrypt the transaction and verify its authenticity.