How Does Public Key Encryption Work?
The main idea of public-key encryption is a two-key system in which the public key helps locate an account, and a private key opens the account for the owner. The two key systems are also called asymmetric cryptography and create an important security layer through the secret or private key.
You can purchase cryptocurrency and store it in a cryptocurrency wallet. You will use a key system to access your stored currency account. Protecting the private key is a critical element of security. Koinal.io provides an easy way to purchase cryptocurrency using a bank-issued debit card or credit card.
How Does Public Key Security Work?
When a blockchain accepts a transaction such as a token purchase, it creates a record of the purchase, assigns an owner, and issues a public and private key. The blockchain proves the existence of the token and the owner. The blockchain provides a private key that only the owner can know. Each time the token is spent, transferred or exchanged, the blockchain creates a new record.
If the transaction creates a new owner, the blockchain issues public and private key pairs. The process is always a one-way street, and once done, it cannot be changed. The public key can be known, but only the private key can work with it to open the account.
Keys are Vital
When you purchase or acquire a cryptocurrency, you possess a private key. The private key is the code required to do something with the currency. The public key cannot reveal the private key, and there can be many public keys connected to a private key. It is possible to recover a public key, but the loss of a private key may have no recourse.
The public key system uses encryption algorithms to generate a pair of keys. The public key is a long string of code that can only be decrypted using the private key. This feature allows a wide distribution of the public key with no risk to security.
Keeping Property Safe
The advantage of asymmetric encryption is ensuring that the owner has made the transaction and assures that it has a permanent, unchangeable record. The blockchain creates the cryptocurrency, and the ledgers record every transaction involving the digital asset.
The mathematics that supports the encryption system is relatively simple when flowing one way but nearly impossible to perform going the opposite direction. The one-way nature of the algorithm and transaction codes keep the property safe and only in the owner’s hands or intended destination.