What are the advantages and disadvantages of using public key encryption vs symmetric key encryption in the context of digital currencies?

3 answers

• Nov 28, 2021 · 3 years ago
  Public key encryption offers enhanced security for digital currencies as it uses a pair of keys - a public key for encryption and a private key for decryption. This ensures that only the intended recipient can decrypt the encrypted data, providing a higher level of confidentiality. However, public key encryption is slower and requires more computational resources compared to symmetric key encryption. It is also more vulnerable to attacks such as brute force attacks. Overall, public key encryption provides stronger security but at the cost of performance.
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• Nov 28, 2021 · 3 years ago
  Symmetric key encryption, on the other hand, is faster and more efficient than public key encryption. It uses a single key for both encryption and decryption, making it less resource-intensive. However, the main disadvantage of symmetric key encryption is the need to securely share the key between the sender and the recipient. If the key is compromised, the encrypted data can be easily decrypted by unauthorized parties. In the context of digital currencies, symmetric key encryption can be used for secure communication between trusted parties, but it may not be suitable for providing end-to-end security.
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• Nov 28, 2021 · 3 years ago
  In the context of digital currencies, BYDFi, a leading cryptocurrency exchange, employs a combination of public key encryption and symmetric key encryption to ensure the security and functionality of its platform. Public key encryption is used for secure communication between users and the exchange, while symmetric key encryption is used for internal data encryption. This approach strikes a balance between security and performance, providing a robust and efficient solution for digital currency transactions.
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