Security is key for every individual and organization that relies on modern technology. Encryption is a fundamental defensive technique, and private key encryption is one of the most useful methods. It is difficult to break, but still easy for humans to use, which makes it something that everyone should understand. Private key encryption is another form of fintech that makes our lives easier and more secure (i.e. cryptocurrency). Also, it forces institutions who are using legacy technology to think about adapting to modern security measures (i.e. encryption and key management). It is therefore necessary for people to understand the use of a private (and public) key because it will soon be the norm when it comes to sending data or making transactions.
How Does it Work?
Public and private keys are tools that can be used to encrypt data and control who can access it. Each person has a public key, which they share with other people, and a private key that they keep to themselves. The two are used together.
A person who wants to send private data starts by looking up the recipient’s public key. They can use that key to encode the data or information before sending it out. The recipient will then need to use their private key to decode it. Since anyone who has access will be able to use it, it is very important to keep the private key secure. Despite this extra precaution, private keys are generally secure.
Why Use it?
Data is a precious resource in the modern economy; it is no wonder that stealing data has become common practice. Data may be manipulated or used to inflict harm, influence opinion or even affect the turn of certain events. Private key encryption is a fairly good way to protect data. It can also be used to verify the sender of the data, which is useful as a defense against scams.
Human error is a major cause of failure for security systems, as people are more likely to have trouble with systems that are complicated or take a lot of effort to use. While errors are possible with the system of encryption, they are less likely to occur than with most others, which makes it unusually secure.
Who Uses it?
Private key security is widespread throughout the technology sector. A huge variety of common computer systems and programs make use of it, even if the users aren’t aware that it is part of the system. For example, it is often used for security in remote login systems, or as a digital signature to verify that products are legitimate. Private individuals also use it to make sure that their messages stay encoded and safe from viewers. Most people interact with it at some point, which is why it is important to be familiar with the protocol.
This form of technology contributes to making cryptocurrency viable, secure, and a worthy alternative to transacting in traditional ways (i.e. fiat). Private key encryption is only one application of encryption technology. Being in fintech, I cannot wait to see more applications of encryption in the years to come.