What is a cryptocurrency key & how does it work?

When you first buy cryptocurrency, you are issued two keys: a public key, which works like an email address (meaning you can safely share it with others, allowing you to send or receive funds), and a private key, which is typically a string of letters and numbers (and which is not to be shared with anyone).

What cryptocurrencies have different private keys?

Different cryptocurrencies can have different private key lengths. Bitcoin, for example, uses 256-bit private keys, which are very long and very complex. Private keys can also come in QR codes and 64-bit hexadecimal codes. Each crypto wallet owner has their own unique private key, and the key itself is stored in the wallet.

How does a key encrypt data?

Like a physical key, it locks (encrypts) data so that only someone with the right key can unlock (decrypt) it. The original data is known as the plaintext, and the data after the key encrypts it is known as the ciphertext.

What is asymmetric or public key encryption?

In asymmetric or public key encryption, the two sides of the conversation each use a different key. One key is called the public key, and one key is called the private key – thusly named because one of the parties keeps it secret and never shares it with anyone.