Differentiate between Symmetric and Asymmetric Encryption Systems.
Symmetric encryption uses a single, secret key for both encrypting and decrypting data. It is generally faster but requires a secure way to share the key.
Asymmetric encryption, or public-key cryptography, uses a pair of keys: a public key for encryption and a private key for decryption. While slower, it solves the key-sharing problem.
Bitcoin primarily uses asymmetric cryptography for creating and verifying digital signatures on transactions.
Glossar
Asymmetric Encryption
Cryptography ⎊ Asymmetric encryption, fundamental to secure communication within cryptocurrency ecosystems and financial derivatives trading, employs a key pair ⎊ a public key for encryption and a private key for decryption.
Digital Signatures
Cryptography ⎊ Digital signatures, within decentralized finance and derivatives, represent a cryptographic mechanism ensuring message authenticity and non-repudiation, critical for secure transaction authorization and contract execution.
Encryption
Cryptography ⎊ Encryption is the mathematical process of encoding information, known as plaintext, into an unreadable format, or ciphertext, using an algorithm and a cryptographic key.