RSA Algorithm

Definition ∞ The RSA algorithm is a public-key cryptographic system widely used for secure data transmission. This asymmetric encryption method relies on the mathematical difficulty of factoring large numbers into their prime factors, employing a pair of keys—a public key for encryption and a private key for decryption. RSA is fundamental for securing digital communications, authenticating digital signatures, and protecting sensitive information across networks. While not directly a blockchain consensus mechanism, its principles of public-key cryptography are foundational to securing cryptocurrency transactions and digital identities.
Context ∞ While blockchain systems primarily use elliptic curve cryptography, the RSA algorithm remains a critical component of the broader cybersecurity infrastructure that supports digital asset ecosystems, such as securing communications between exchanges and users. News related to cryptographic advancements or vulnerabilities can indirectly impact the perceived security of digital systems, including those handling cryptocurrencies. Understanding RSA provides context for the cryptographic underpinnings of digital security.