A public key is a unique cryptographic address that allows you to securely receive cryptocurrency and verify transactions on the blockchain network. It’s basically “your account number” in the digital world, which you can share without hassle.
How does the public key work?
Generation: the public key is mathematically derived from the private key. It is important to note that this process is unidirectional: it is relatively easy to generate a public key from a private key, but it is virtually impossible to reverse the process and derive the private key from the public key. This fundamental property ensures the security of the system.
Wallet address: From the public key, the address of your crypto wallet is generated. This is the string you share with other people when you want to receive cryptocurrency. It’s similar to a bank account number or an email address. Anyone can see your public address, but no one can access your funds without the corresponding private key.
Verifying signatures: In addition to generating the address, the public key has a crucial function in verifying digital signatures. When you initiate a transaction and sign it with your private key, nodes in the network (or anyone who wants to verify the transaction) use your public key to confirm that:
- The transaction was signed by the legitimate holder of the corresponding private key.
- The transaction has not been altered since the time of signing.
Why is the public key important?
- Enables receipt of funds: Without a public key (and therefore a wallet address), you would have no “place” to receive cryptocurrency.
- Transparency and verification: Anyone on the network can verify the authenticity of transactions without compromising the security of the private key.
- Asymmetric security foundation: It’s the “public” half of the system that enables data confidentiality and integrity in an open environment.
Essentially, while the private key gives you control and the ability to sign, a public key is what enables open and verifiable interaction in the blockchain network, being your unique address in the crypto world.
If you want to learn more about how blockchain works, cryptocurrency security and other essential concepts, we invite you to explore the Abarai blog. There you will find a wealth of in-depth articles that will explain everything from the basics of blockchain to its practical applications and the latest innovations in the field. Interested in the price of certain cryptocurrencies? Explore our dedicated page for the latest quotes!