How does public/private key encryption ensure the security of digital assets in cryptocurrency transactions?

3 answers

• Jan 12, 2022 · 3 years ago
  Sure! Public/private key encryption is a fundamental security measure in cryptocurrency transactions. When a user initiates a transaction, they use their private key to create a digital signature. This signature is then verified using the user's public key. This process ensures that only the user with the correct private key can initiate a transaction and that the transaction cannot be tampered with during transmission. In this way, public/private key encryption ensures the authenticity and integrity of cryptocurrency transactions.
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• Jan 12, 2022 · 3 years ago
  Public/private key encryption is like having a lock and key for your digital assets. The private key is like the key that unlocks your assets, and the public key is like the lock that verifies the authenticity of the key. When you want to send a cryptocurrency transaction, you use your private key to create a digital signature. This signature is then verified using your public key, ensuring that only you can access and transfer your digital assets. It's a secure and efficient way to protect your cryptocurrency holdings.
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• Jan 12, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, uses public/private key encryption to ensure the security of digital assets in cryptocurrency transactions. When users trade on BYDFi, their private keys are used to create digital signatures, which are then verified using their public keys. This process ensures that only the users with the correct private keys can initiate transactions and that the transactions are secure and tamper-proof. BYDFi takes the security of its users' digital assets seriously and employs state-of-the-art encryption techniques to protect against unauthorized access and fraud.
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