Can you explain the differences between symmetric and public key encryption and how they apply to the security of digital currencies?

1 answers

• Mar 22, 2022 · 3 years ago
  Sure thing! Symmetric encryption is like using the same key to lock and unlock a safe, while public key encryption is like using a different key to lock and unlock a safe. With symmetric encryption, the same key is used for both encryption and decryption. This means that the sender and the recipient need to have the same key in order to communicate securely. However, securely exchanging the key can be a challenge. Public key encryption, on the other hand, uses a pair of keys - a public key and a private key. The public key is used to encrypt the data, while the private key is used to decrypt it. The public key can be freely shared, while the private key must be kept secret. This allows for secure communication without the need for a secure key exchange. In the context of digital currencies, symmetric encryption is often used to protect the data stored on the blockchain, while public key encryption is used for secure transactions and verifying the authenticity of digital signatures.
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