Public Key Cryptography - what is it and what is it for?

Public Key Cryptography is an encryption method.

Because every cryptocurrency system operates on the principles of decentralization, there must be technically competent solutions to ensure the security of data and monetary digital assets of each user. It is for this purpose that Public Key Cryptography is used. This method determines how data is encrypted, resulting in users having:

  • open key (public), which is an address (analogous to a bank account) - it is transferred to other community members who must transfer funds in cryptocurrency;
  • a private key is a digital cryptographic code that ensures the security of access to a crypto wallet; it is used to confirm the transfer of money by the owner of crypto money.

Public Key Cryptography is an adequate measure to ensure network stability, prevent fraud, and validate all payments made by community members. It is confirmation through a private cryptographic key that allows miners to validate transactions, excluding fraud on the part of one of the participants in the transaction.