A A public key is a cryptographic code that allows users to receive cryptocurrencies into their accounts. It's derived from a private key and can be shared openly, acting as an address to which others can send cryptocurrency. More is a cryptographic code that allows users to receive cryptocurrencies into their accounts. It is derived from a A private key is a sophisticated form of cryptography that allows a user to access their cryptocurrency. It is an integral aspect of cryptocurrencies and is essential for any form of transactions to be made. Key Points: • Unique Identifier: • Every private key is a unique alphanumeric string that is known only to the owner. It's generated when a... More and is used in tandem with it in the encryption process.
- Pairing with Private Key:
- Every public key has a corresponding private key. They are mathematically linked, but it’s computationally infeasible to deduce the private key if you know the public key.
- Unlike private keys, public keys are meant to be shared. They are used to create In the cryptocurrency world, a wallet is a digital tool that allows users to store, send, and receive digital currencies. Wallets can be software-based (online, desktop, or mobile) or hardware devices that securely store users' private keys. More addresses where others can send you cryptocurrencies.
- Encryption & Digital Signatures:
- Public keys are used in encryption and digital signatures. When someone wants to send an encrypted message, they use the recipient’s public key. The recipient then uses their private key to decrypt it.
- For digital signatures, the signer uses their private key to sign, and the recipient uses the signer’s public key to verify the signature.
- Sharing your public key does not compromise the security of your funds. However, the private key, which is linked to the public key, must remain confidential.
- Address Generation:
- Cryptocurrency is a form of digital or virtual currency that uses cryptography for security and operates independently of a central authority or traditional banking system. Cryptocurrencies leverage blockchain technology to gain decentralization, transparency, and immutability. Key Features: • Decentralization: Cryptocurrencies operate on a decentralized network of computers, meaning no central authority governs or regulates it. • Cryptography: Secure transactions and... addresses, which are used to receive funds, are often generated from public keys through a hashing process.
- While a public key is generated from a private key, the reverse is not true. One cannot derive the private key from the public key due to the cryptographic algorithms in place.
- Cryptocurrency Transactions:
- When Alice wants to send Bob some cryptocurrency, Bob provides his public key (or address derived from it). Alice uses this to send the funds, and Bob uses his private key to access and spend them.
- Secure Communication:
- In encrypted messaging, if Bob wants to send Alice a confidential message, he encrypts it using Alice’s public key. Only Alice, with her private key, can decrypt and read the message.