How does a ledger public key work in the world of cryptocurrencies?

3 answers

• CorneliaMay 21, 2022 · 3 years ago
  A ledger public key is a cryptographic key that is used in the world of cryptocurrencies to verify the authenticity and integrity of transactions. It is derived from a private key and is made publicly available to ensure transparency in the blockchain network. When a transaction is made, the sender uses their private key to sign the transaction with a digital signature. The recipient can then use the sender's public key to verify the signature and ensure that the transaction has not been tampered with. This process helps to prevent fraud and maintain the security of the cryptocurrency network.
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• rikykingMay 26, 2024 · a year ago
  In simple terms, a ledger public key is like a lock, and the private key is the corresponding key that can unlock it. When you want to send a cryptocurrency transaction, you use your private key to create a digital signature. This signature is then verified by the recipient using your public key. If the signature is valid, it means that the transaction was indeed sent by you and has not been altered. This system ensures the security and integrity of transactions in the world of cryptocurrencies.
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• kun iNov 07, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, explains that a ledger public key is an essential component of blockchain technology. It is used to verify the authenticity of transactions and prevent unauthorized access to funds. When a transaction is initiated, the sender's public key is used to encrypt the transaction details. This encrypted data can only be decrypted using the sender's private key, ensuring that only the intended recipient can access the transaction information. This process adds an extra layer of security to the cryptocurrency ecosystem.
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