February 8, 2022 4:23 AM EST
Cryptocurrency is made up of two parts: a public key and a private key. When a coin is used in a transaction, the public key is recorded on the blockchain. The private key is known only to the owner of the coin. During transactions, it works as a form of signature or authorization from the coin owner, guaranteeing that the transaction is legal.
The use of both public and private keys provides anonymity for users since transactions don't require identity verification, unlike with credit cards and bank accounts. This allows users to have much more anonymity when they want to make private transactions.
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