Definition ∞ Asymmetric encryption uses a pair of distinct cryptographic keys for securing digital communications. One key, known as the public key, can be freely distributed for data encryption or signature verification. The other, a private key, remains confidential and is used for decryption or creating digital signatures. This cryptographic method forms the basis for secure transactions and identity verification across many blockchain systems.
Context ∞ Asymmetric encryption is a foundational technology for digital asset security, enabling secure wallet operations and transaction signing. The ongoing discourse addresses the increasing computational power that might one day threaten certain asymmetric algorithms. Quantum-resistant cryptographic solutions are a significant area of research and development for long-term security.
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