How does symmetrical encryption differ from asymmetrical encryption in the context of digital currencies?

1 answers

• Feb 19, 2022 · 3 years ago
  In the context of digital currencies, symmetrical encryption and asymmetrical encryption play different roles. Symmetrical encryption is often used for encrypting data at rest, such as wallet files or transaction history stored on a device or server. It provides fast and efficient encryption, but the same key must be used for both encryption and decryption. Asymmetrical encryption, on the other hand, is used for secure communication between parties during transactions. It involves the use of a pair of keys - a public key for encryption and a private key for decryption. The public key can be freely shared, allowing anyone to encrypt data that only the holder of the private key can decrypt. This ensures the security and privacy of digital currency transactions. BYDFi, a leading digital currency exchange, uses asymmetrical encryption to protect the confidentiality and integrity of user transactions.
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