Public key cryptography Meaning

Also known as asymmetric cryptography, this is a system that uses pairs of keys: public keys, which may be disseminated widely, and private keys, which are known only to the owner. This system performs two main functions: authentication, where the public key verifies that a holder of the paired private key created a digital signature, and encryption, where only the paired private key holder can decrypt a message encrypted with the public key.In blockchain technology, this is the engine that enables trustless transactions.

When you send a transaction, you sign it with your private key. The network uses your public key to verify that the signature is valid without ever needing to see your private key.

This allows for the secure transfer of value over a public, untrusted network like the internet.The most common algorithms used in this field are RSA and Elliptic Curve Cryptography (ECC).

Most modern blockchains prefer ECC (specifically the secp256k1 curve used by Bitcoin) because it provides the same level of security as RSA but with much smaller key sizes, which reduces the amount of data that needs to be stored on the blockchain and transmitted over the network.