Public-key encryption: always comes at a price

When entering into onlinetrade forex software
platforms now offer security even though it comes with a hefty price tag. Unlike 'secret-key encryption', 'public-key encryption' has two keys that are mathematically related. These key pairs can be used either to provide privacy or authentication. As the name suggests, the private-key is kept a closely guarded secret by the owner and the public-key is freely circulated. This technique is referred to as RSA (named after Rivet, Shamir, Adolman of MIT). It is very secure even though the algorithm makes it expensive to implement. Most often, since security comes with a price, and because data security is very important, the modern traders do not mind implementing such a complex algorithm.

The use of the keys and their role in encryption/decryption can be explained with an example. Suppose, 'A' and 'B' wish to communicate with each other so that the communication is private and authentic. 'A' generates a private and a public key pair from a seed number. 'B' similarly generates its key pair using another seed number. 'A' provides his public-key to 'B' and receives 'B's public-key. The private keys are kept a closely guarded secret by both 'A' and 'B'. 'A' can send a private message to 'B' by encrypting the message using 'B's' public-key. Only 'B' can decrypt this message using his own private key. This ensures that only 'B' can decrypt the message, but does not guarantee that 'A' has sent it.

To authenticate the message source namely 'A' and 'B' to be authentic and private, 'A' first encrypts the message using his private-key. 'B' first decrypts the message using his private-key and then further decrypts it using 'A's' public-key. Since the public-key is comparatively slow to use and requires a lot of processing, they can cause significant delays in encryption and decryption. When public-key is used for authentication, it is undesirable to encrypt the complete message, particularly if it is long. Digital signatures come to the rescue here. A digital signal that is once saved in the system will crosscheck the data from a particular source and will transmit it only if it is genuine.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (199) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
kanon's picture
kanon
98.9
5
DrApeman's picture
DrApeman
98.9
6
CompBanker's picture
CompBanker
98.9
7
Secyh62's picture
Secyh62
98.9
8
dosk17's picture
dosk17
98.9
9
GameTheory's picture
GameTheory
98.9
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”