I recently came across a good explanation about how digital signatures work in crypto transactions. I feel the need to share it because many people still misunderstand this.

Think of it simply like this: a public key is like your phone number that you share with everyone. It only relates to your wallet assets, and everyone can see it. But privacy is completely different — it’s like your ID number, known only to you. No one else is allowed to have it.

The cool part is, when you want to make a transaction, you use your private key to create a signature on the public key. This is how you prove that you are the one approving the transaction. Then, nodes in the network verify this signature — they check if it’s valid, and then they allow the transfer of your wallet.

And here’s the interesting part — once the transaction is confirmed and packaged, that node receives a reward, which everyone calls Gas. It’s like an incentive mechanism to keep nodes working and maintaining the network.

I like this explanation because it helps clarify the abbreviations and terms in this system — from how we abbreviate public and private keys to how digital signatures work. Everything connects in a very logical way.