Glosarium

Public Key

Easy

A public key refers to a series of alphanumeric characters used to encrypt plain text messages into ciphertext.

What Is a Public Key?

A public key refers to a series of alphanumeric characters used to encrypt plain text messages into ciphertext. A public key is used in conducting peer-to-peer transactions without the need to reveal the composition of one’s private keys, supporting a cryptographic function that allows for a safe and secure exchange of assets and information without the need for a third party.

A user provides his public key in order to engage in a peer-to-peer transaction with any individual. They can also keep this key publicly available. All private keys, which are secret keys used to access crypto funds, are associated with a corresponding particular public key since they are mutually generated using advanced asymmetric algorithm systems. This ensures that no one can derive the private key of any user just by knowing their public keys.

To better understand how both function together, a private key can be viewed as a security feature that encrypts a transaction to prevent anyone from getting unauthorized access over an asset while a public key is a feature that decrypts the private key in order to authorize access. In the cryptocurrency space, a public key allows you to receive tokens and the private key allows you to prove that you are the real owner of the token you are receiving.