Why is the public-key method of encryption crucial for online financial transactions?
Why is the public-key method of encryption crucial for online financial transactions?
The public-key method of encryption is crucial for online financial transactions because it provides a secure way to exchange sensitive information, such as credit card numbers and passwords, over the internet.
In a public-key encryption system, each user has two keys - a public key and a private key. The public key can be freely shared with anyone, while the private key is kept secret. The public key is used to encrypt data, while the private key is used to decrypt it.
When a user wants to send sensitive information, such as a credit card number, to a website, they encrypt the data using the website's public key. Only the website's private key can decrypt the data, so even if the data is intercepted by a third party, it cannot be read without the private key.
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