What Is a Public Key?

A public key is a type of cryptographic code used to encrypt and decrypt sensitive information. In cryptography, “Keys” are pieces of information that scramble data so it is uninterpretable without an algorithm specifically designed to unlock it. A public key and its counterpart, a private key, form the cornerstone of public key cryptography. 

Why are public keys important?

Public keys are important because they help protect sensitive information and send it securely. 

For example, imagine sending a confidential letter that’s only intended for the recipient. You might consider sending the letter in a locked box, but you would also have to send the key. However, if someone intercepts your package, they’ll have access to the key, easily unlock the box, and read your letter. This is the challenge that public key encryption aims to solve.

With public key encryption, instead of one key, you have two. So when sending your letter in a locked box, your public key would protect (or encrypt) the box, and only the recipient's private key can unlock (or decrypt) it. This way, even if someone intercepts your package, they can't open the box without the recipient's private key. The public key ensures your message remains secure during its journey.

What is public key encryption?

Public key encryption, also known as asymmetrical encryption and public key cryptography, is a type of encryption that secures data transfer over the internet. The term “public” means it's openly distributed and accessible to everyone, while the “private” key is known only to the owner. 

How are public keys used?

Public keys, such as cryptocurrencies and digital signatures, are commonly used in secure digital information transfers. For a cryptocurrency wallet, the public key acts as an address to which people can send cryptocurrency. It's similar to an email address but for cryptocurrency. On the other hand, your private key allows you to access and manage your crypto. With it, you can prove the cryptocurrency belongs to you.

Public keys are also used to create digital signatures. Just as you sign a paper document to verify it came from you, a digital signature does the same for electronic documents. Here, the private key creates the signature, and the public key validates it. It guarantees that no one tampered with the message during transit and authenticates the sender's identity.

Related terms

• Hashing

• Encapsulation

• Private key

• Authentication

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