A public key is a cryptographic address that serves as the recipient address for cryptocurrency transactions. It’s analogous to your physical address for receiving mail. While your private key is a secret code that grants you access to your funds, your public key is freely shared with others.
How does it work?
- Key Generation: When you create a cryptocurrency wallet, a pair of cryptographic keys is generated: a public key and a private key. These keys are mathematically linked.
- Sharing the Public Key: Your public key is shared with others who want to send you cryptocurrency. This is often displayed as a long string of characters or a QR code.
- Sending Transactions: When someone wants to send you cryptocurrency, they use your public key as the recipient address. The transaction is broadcast to the blockchain network.
- Verification: The network verifies that the transaction is valid by using the public key to ensure that the funds are being sent to the correct address.
Key Points:
- Security: Your private key is crucial for accessing and controlling your funds. It should be kept highly secure and never shared with anyone.
- Publicity: Your public key can be shared publicly without compromising your security.
- Multiple Addresses: You can create multiple public key addresses for different purposes, such as receiving funds from different sources or for privacy reasons.
- Blockchain Transparency: All transactions involving your public key are recorded on the blockchain, making them publicly verifiable.