Public Key Definition
The public key is a fundamental concept in cryptography, particularly within blockchain and cryptocurrency technologies. It is a cryptographic code that allows users to receive transactions into their digital wallets on a blockchain network. The public key is one part of a key pair that includes a private key. While the private key is used to sign transactions, the public key is shared openly and is used by other participants to encrypt messages or transactions intended for the key holder.
Public Key Key Points
- The public key is part of a pair of cryptographic keys, the other being the private key.
- Public keys are used for encryption and are visible to all users of a network.
- They are used within blockchain networks to receive cryptocurrencies into digital wallets.
- The encryption process involving public and private keys ensures secure and anonymous transactions.
What is a Public Key?
The public key is a part of a key pair used in asymmetric cryptography, where two keys – a private key and a public key – are used for encryption and decryption of data. In the context of blockchain and cryptocurrency, it is associated with a digital wallet and is essential for making transactions.
Why is a Public Key important?
The public key is crucial to maintain the security and integrity of the blockchain network. It enables secure, anonymous transactions by allowing encrypted communication between network nodes. The public key is shared openly on the network, meaning anyone can use it to send encrypted messages or transactions to the key holder, maintaining the confidentiality of the transaction details.
When is the Public Key used?
The public key is used every time a digital transaction occurs on the blockchain. For example, if someone wants to send Bitcoin to another individual, they would use that person’s public key to encrypt the transaction. The recipient of the Bitcoin would then use their private key to decrypt and access the transaction.
Who uses the Public Key?
Every participant on a blockchain network has a public key. It is used by anyone wanting to send transactions to the key holder. On the other hand, only the key holder has access to the corresponding private key, ensuring only they can decrypt and access the transactions encrypted with their public key.
Where is the Public Key stored?
Each user’s public key is stored on the blockchain network and is associated with their respective digital wallet. This is where it can be copied by other users who want to send them transactions.
How is a Public Key created?
A public key is derived from a private key using a mathematical algorithm. The process, known as elliptic curve multiplication, is a one-way function, meaning it is easy to generate a public key from a private key but nearly impossible to do the opposite. This asymmetry ensures the security of the key pair and the transactions they enable.
