Asymmetric Cryptography

Definition ∞ Asymmetric cryptography uses a pair of mathematically linked keys, one public and one private, for secure communication. This cryptographic method, also known as public-key cryptography, enables secure data exchange and digital signatures without requiring a shared secret key beforehand. The public key can be openly distributed for encryption or signature verification, while the private key remains confidential for decryption or signature creation. This duality forms the security foundation for blockchain transactions, digital asset ownership, and identity verification in decentralized systems.
Context ∞ Asymmetric cryptography is central to the security and integrity of nearly all digital assets and blockchain networks. Its utilization underpins wallet addresses, transaction signing, and the verifiable transfer of value across distributed ledgers. Ongoing developments in quantum computing present a long-term challenge to current asymmetric cryptographic standards, prompting research into quantum-resistant cryptographic solutions for future digital asset security.