A public key is a cryptographic code that allows a user to receive virtual assets, such as cryptocurrencies, into their account. This public key, coupled with the coresponding private key, are required to ensure cybersecurity measures in decentralized markets.
When a user initiates his/her first-ever transaction with bitcoin or altcoins, a unique pair of both a public key and a private key is created. Each of these keys are a long string of alphanumeric characters that keep a user’s funds secure in the digital ecosystem. The private key is known only to the user and serves as the user’s digital ID, authorizing the user to spend, withdraw, transfer or carry out any other transaction from their account. Both keys are stored in a digital wallet.
« Back to Glossary Index