What Is the Relationship between a Private Key and a Public Key?
A private key and a public key are a mathematically linked pair used for cryptographic security. The public key is derived from the private key and acts as the address where others can send you cryptocurrency.
The private key is used to generate the digital signature required to authorize a transaction from that address. The private key must remain secret.
Glossar
Key
Function ⎊ A key, within cryptocurrency, options, and derivatives, represents a cryptographic identifier enabling access to digital assets or contract terms, functioning as a prerequisite for executing transactions or asserting ownership.
Private Key
Ownership ⎊ The private key is the definitive proof of non-custodial ownership over the associated cryptocurrency or the collateral securing a derivative position.
Public Key
Address ⎊ The public key mathematically derives the wallet address used to receive funds, collateral, or option contract payouts on the blockchain.
Digital Signature
Authentication ⎊ A digital signature, within cryptocurrency, options trading, and financial derivatives, functions as cryptographic attestation of a transaction’s origin and integrity, ensuring non-repudiation for the signatory.