What are the private and public keys used for in cryptocurrency?

3 answers

• Nov 25, 2021 · 3 years ago
  Private and public keys are essential components of cryptocurrency transactions. The private key is a secret code that allows the owner to access and control their digital assets. It is used to sign transactions and prove ownership. On the other hand, the public key is derived from the private key and is publicly shared. It serves as an address where others can send funds. When a transaction is initiated, the sender uses the recipient's public key to encrypt the transaction data, and the recipient uses their private key to decrypt and access the funds. In summary, private keys are used for authentication and control, while public keys are used for identification and receiving funds.
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• Nov 25, 2021 · 3 years ago
  Cryptocurrency private and public keys are like the lock and key of a digital safe. The private key is the unique code that unlocks the safe and allows you to access your funds. It should be kept secure and never shared with anyone. The public key, on the other hand, is like the address of the safe. It can be freely shared with others, allowing them to send funds to your wallet. When you want to spend your cryptocurrency, you use your private key to sign the transaction and prove that you are the rightful owner. The public key is used to verify the signature and ensure the transaction is valid. So, in simple terms, private keys are for unlocking and accessing your funds, while public keys are for receiving funds and verifying transactions.
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• Nov 25, 2021 · 3 years ago
  Private and public keys are fundamental to the security and functionality of cryptocurrencies. The private key is a randomly generated string of characters that acts as a digital signature for transactions. It is kept secret and should never be shared with anyone. The public key, derived from the private key, is used to generate a unique wallet address. This address is what you share with others to receive funds. When you want to send cryptocurrency, you use your private key to sign the transaction, ensuring its authenticity. The public key is then used to verify the signature and confirm that the transaction was indeed signed by the rightful owner. So, private keys are like your secret password, while public keys are like your public username or address.
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