The technical procedure that protects private or sensitive information from getting into the wrong hands is encryption. Encryption and decryption between two parties ensure that a third party cannot decipher or abuse cryptocurrency messages and transactions.
However, encryption with blockchain technology is more complex than password-protecting a file or enabling two-factor authentication on a platform. One characteristic that makes blockchain such an intriguing technology for various user types is encryption.
Cryptographic transactions heavily rely on encryption. Algorithms and keys are sometimes used in systems and networks that use encryption. For instance, Bitcoin encryption provides users with either a private key or a seed phrase that creates both a private and public key. Anyone can access that public key, which is comparable to a Bitcoin address. You would give it to another person to carry out a Bitcoin transaction.
Asymmetric encryption is a common technique used by cryptocurrencies to protect network transactions. These “keys” are the user’s encryption tool because they can encrypt and decrypt data.
