Can you explain how a public key is generated and used in the context of cryptocurrencies?

3 answers

• Feb 18, 2022 · 3 years ago
  A public key in the context of cryptocurrencies is generated through a complex mathematical algorithm. It is derived from a private key and serves as an address for receiving funds. When a user wants to receive cryptocurrency, they share their public key with the sender, who then uses it to encrypt the transaction data. The public key is also used to verify digital signatures, ensuring the authenticity of transactions. It is an essential component of cryptocurrency transactions, providing security and privacy.
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• Feb 18, 2022 · 3 years ago
  Generating a public key in the context of cryptocurrencies involves a process called elliptic curve cryptography. This algorithm uses mathematical curves to generate a pair of keys - a private key and a public key. The private key is kept secret and is used for signing transactions, while the public key is shared with others for verification purposes. When a transaction is made, the sender uses their private key to create a digital signature, which can only be verified using the corresponding public key. This ensures that the transaction is authentic and has not been tampered with.
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• Feb 18, 2022 · 3 years ago
  In the context of cryptocurrencies, the generation and use of a public key is crucial for secure and transparent transactions. When a user creates a wallet, a pair of cryptographic keys is generated - a private key and a public key. The public key is derived from the private key using mathematical algorithms. It is then used to generate a unique address for receiving funds. When a sender wants to send cryptocurrency to the user, they use the recipient's public key to encrypt the transaction data. This ensures that only the intended recipient can access the funds. Additionally, the public key is used to verify the digital signatures of transactions, providing a way to authenticate the sender's identity and prevent fraud.
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