How does public key encryption ensure the security of digital currency transactions?

3 answers

• Nov 23, 2021 · 3 years ago
  Public key encryption plays a crucial role in securing digital currency transactions. When a user initiates a transaction, their private key is used to create a digital signature that verifies their identity and ensures the integrity of the transaction. This signature is then encrypted using the recipient's public key, which can only be decrypted by the recipient's private key. This process ensures that only the intended recipient can access and decrypt the transaction details, preventing unauthorized access and tampering. Additionally, public key encryption provides a secure way to exchange public keys, allowing users to verify each other's identities before engaging in transactions.
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• Nov 23, 2021 · 3 years ago
  Public key encryption is like having a lock and key system for digital currency transactions. Each user has a pair of keys - a public key and a private key. The public key is freely shared with others, while the private key is kept secret. When a user wants to send a transaction, they use their private key to create a digital signature. This signature is then encrypted using the recipient's public key. Only the recipient, with their private key, can decrypt and verify the signature, ensuring that the transaction is authentic and hasn't been tampered with. This way, public key encryption provides a secure and reliable method for protecting digital currency transactions.
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• Nov 23, 2021 · 3 years ago
  Public key encryption is the backbone of secure digital currency transactions. It ensures that only the intended recipient can access and decrypt the transaction details. Let's take BYDFi as an example. When a user initiates a transaction on BYDFi, their private key is used to create a digital signature. This signature is then encrypted using the recipient's public key, which can only be decrypted by the recipient's private key. This process guarantees that the transaction remains confidential and secure, preventing any unauthorized access or tampering. By utilizing public key encryption, BYDFi ensures the highest level of security for its users' digital currency transactions.
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