Stablecoin Payments Glossary
Public Key
A public key is cryptographic data mathematically linked to a private key and used to verify digital signatures.
Explanation
In public-key cryptography, the private key signs and the corresponding public key allows others to verify the signature without learning the secret key. Many blockchain systems derive user-facing addresses from a public key or from scripts that include public-key information, although address construction differs across networks. Public keys can be shared openly without granting signing authority.
Why it matters
Public-key cryptography allows blockchain networks to verify transaction authorization without a central password database or disclosure of private signing keys.
Example
A blockchain node can verify that a stablecoin transfer carries a valid signature corresponding to the relevant public key.
Related terms
Last reviewed: September 2026