Public Keys vs. Private Keys: What Is It & How Do They Work?

Cryptography is the core of cryptocurrency, and without it, none of the transactions will be secured, nor the integrity of any information is upheld. Think of it this way, when you perform peer-to-peer (P2P) transfers, your data may be exposed without secure encryption, and anyone can attempt to read the data structure without knowing the data has been tampered with. That’s exactly why private and public keys are so essential to authorize these transactions.

While both the public and private keys strive to secure a transaction, they are distinctively different, corresponding with their purposes. When comparing them side-by-side, a public key is used to verify a transaction after a transaction has been requested. Commonly a public key is also translated as an ‘address’ to receive cryptocurrencies. Whereas a private key that is associated with a cryptocurrency account focuses on authorizing the transaction.

Typically, a private key is not shared and only the owner should know it. In another word, if anyone granted access to your private key will have the authority to deplete your asset in a wallet.