The Leading Business Education Network for Doctors, Financial Advisors and Health Industry Consultants

Dr. David Edward Marcinko; MBA MEd

SPONSOR: http://www.HealthDictionarySeries.org

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In the evolving landscape of digital security, the concept of a passkey has emerged as one of the most promising advancements in how people authenticate their identity online. For decades, passwords have been the default method for securing accounts, yet they have always carried significant weaknesses: they can be guessed, stolen, reused, or phished. Passkeys were created to solve these long‑standing problems by offering a simpler, more secure, and more user‑friendly alternative. Understanding what a passkey is requires exploring how it works, why it is more secure than traditional passwords, and what its adoption means for the future of online identity.

A New Approach to Authentication

A passkey is a modern, password‑less authentication method based on public‑key cryptography. Instead of relying on a string of characters that a user must remember, a passkey uses a pair of cryptographic keys—one public and one private—to verify identity. The public key is stored on the service you are logging into, while the private key stays securely on your device and never leaves it. When you attempt to sign in, the service sends a challenge that can only be answered using the private key. If the response matches, you are authenticated.

This system eliminates the need for users to create or manage passwords. In practice, signing in with a passkey feels similar to unlocking a phone: you might use a fingerprint, face recognition, or a device PIN. The complexity happens behind the scenes, making the experience both secure and seamless.

Why Passkeys Are More Secure

The security advantages of passkeys stem from the fact that they remove the vulnerabilities inherent in passwords. Passwords can be weak, reused across multiple sites, or exposed in data breaches. Even strong passwords can be stolen through phishing attacks, where users are tricked into entering their credentials on fake websites.

Passkeys, by design, are resistant to these threats. Because the private key never leaves the user’s device, it cannot be intercepted or stolen by attackers. Even if a company’s database is compromised, only the public key is exposed, which is useless without the corresponding private key. Additionally, passkeys are phishing‑resistant: they only work on the legitimate website or app they were created for, making it impossible for attackers to trick users into handing over their credentials.

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How Passkeys Work Across Devices

One of the most important features of passkeys is their ability to sync securely across a user’s devices. Major technology companies—including Microsoft, Google, and Apple—have implemented passkey support in their ecosystems. This means that if you create a passkey on your phone, it can be available on your laptop or tablet through encrypted cloud synchronization.

For example, if you sign in to a website on your computer, your phone can act as the authenticator. You simply approve the login using your phone’s biometric sensor, and the passkey verifies your identity. This cross‑device functionality makes passkeys not only secure but also highly convenient.

The Role of Industry Standards

Passkeys are built on standards developed by the FIDO Alliance and the World Wide Web Consortium (W3C). These organizations have spent years designing authentication methods that are both secure and interoperable. Their work ensures that passkeys function consistently across different devices, operating systems, and browsers. This standardization is crucial for widespread adoption, as users expect their authentication methods to work everywhere without friction.

User Experience and Everyday Benefits

From a user’s perspective, passkeys simplify the login process dramatically. There is no need to remember complex passwords, reset forgotten ones, or worry about whether a password has been compromised. Signing in becomes as easy as unlocking a device.

This ease of use also benefits organizations. Fewer password‑related issues mean fewer support requests, reduced security risks, and a smoother experience for customers and employees. As more services adopt passkeys, users will begin to expect this level of convenience everywhere they go online.

Challenges and the Path Forward

Despite their advantages, passkeys are still in the early stages of adoption. Many websites and services have not yet implemented support, and some users may be hesitant to trust a new authentication method. Additionally, people often use multiple devices from different manufacturers, and ensuring seamless interoperability remains an ongoing effort.

However, the momentum behind passkeys is strong. Major tech companies are actively promoting them, and security experts widely agree that they represent a significant improvement over passwords. As more services adopt passkeys and users become familiar with them, the transition away from passwords will accelerate.

Conclusion

A passkey represents a fundamental shift in how people authenticate their identity online. By replacing passwords with cryptographic keys stored securely on personal devices, passkeys offer a solution that is both more secure and more convenient. They eliminate the vulnerabilities of traditional passwords, resist phishing attacks, and streamline the login experience. While adoption is still growing, the technology has the backing of major industry players and strong security standards. As the digital world continues to evolve, passkeys are poised to become a cornerstone of modern authentication, marking a significant step toward a safer and more user‑friendly internet.

COMMENTS APPRECIATED

EDUCATION: Books

SPEAKING: Dr. Marcinko will be speaking and lecturing, signing and opining, teaching and preaching, storming and performing at many locations throughout the USA this year! His tour of witty and serious pontifications may be scheduled on a planned or ad-hoc basis; for public or private meetings and gatherings; formally, informally, or over lunch or dinner. All medical societies, financial advisory firms or Broker-Dealers are encouraged to submit an RFP for speaking engagements: CONTACT: Ann Miller RN MHA at MarcinkoAdvisors@outlook.com -OR- http://www.MarcinkoAssociates.com

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Dr. David Edward Marcinko; MBA MEd

SPONSOR: http://www.HealthDictionarySeries.org

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Understanding Exchange in Modern Systems

Transactional economics centers on the idea that economic life is fundamentally built on exchanges—of goods, services, information, labor, and even social capital. Rather than treating markets as abstract systems governed solely by supply and demand curves, transactional economics focuses on the interactions between individuals and institutions, the incentives that shape those interactions, and the costs and benefits embedded in every exchange. It is a lens that brings the human element of economics into sharper focus, revealing how relationships, trust, and negotiation shape outcomes just as much as prices and quantities do.

At its core, transactional economics begins with the premise that every economic action is a transaction. A transaction is not merely the transfer of money for a product; it is a structured interaction that requires agreement, coordination, and mutual expectations. This perspective highlights the importance of transaction costs—the time, effort, and resources required to initiate, negotiate, and enforce an exchange. These costs can be as simple as the time spent comparing prices or as complex as the legal structures needed to enforce a contract. When transaction costs are high, markets become less efficient, and alternative forms of organization—such as firms, long‑term contracts, or informal networks—emerge to reduce friction.

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One of the most compelling insights of transactional economics is how institutions evolve to minimize these costs. Firms exist not only to produce goods but also to streamline transactions. Within a firm, employees do not negotiate every task or responsibility; instead, authority structures and routines reduce the need for constant bargaining. Similarly, legal systems, regulatory frameworks, and cultural norms all function as tools that lower uncertainty and make transactions smoother. When rules are clear and enforcement is reliable, individuals and businesses can engage in exchanges with greater confidence, expanding the scope of economic activity.

Trust plays a central role in this framework. While traditional economic models often assume rational actors operating with perfect information, transactional economics acknowledges that real‑world exchanges are riddled with uncertainty. Trust reduces the need for costly monitoring and enforcement. A handshake agreement between long‑time partners can be more efficient than a detailed contract between strangers. In this sense, social relationships become economic assets. Communities with high levels of trust and strong social networks often experience more vibrant economic activity because the invisible infrastructure of cooperation lowers the cost of doing business.

Information is another critical component. Transactions require knowledge—about prices, quality, reliability, and alternatives. When information is unevenly distributed, one party may exploit the other, leading to market failures. Transactional economics highlights how mechanisms such as warranties, brand reputations, and third‑party certifications emerge to bridge information gaps. These tools help align expectations and reduce the risk of opportunistic behavior. In digital markets, platforms like online marketplaces or ride‑sharing apps serve as intermediaries that manage information flows, enforce rules, and build trust between anonymous participants.

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The rise of digital technology has transformed transactional economics in profound ways. Online platforms dramatically reduce transaction costs by automating search, comparison, payment, and verification processes. They also create new forms of value by aggregating data and facilitating interactions at scale. However, these efficiencies come with new challenges. Platforms often gain disproportionate power, shaping the terms of transactions and extracting value through fees or data collection. The balance between efficiency and fairness becomes a central concern, as the structure of digital transactions can influence competition, labor conditions, and consumer autonomy.

Transactional economics also sheds light on the behavior of individuals within markets. People do not always act as perfectly rational agents; they rely on heuristics, emotions, and social cues. Negotiation, reciprocity, and reputation influence outcomes in ways that traditional models struggle to capture. By examining the micro‑level dynamics of exchange, transactional economics provides a richer understanding of how people actually behave when making economic decisions.

COMMENTS APPRECIATED

EDUCATION: Books

SPEAKING: Dr. Marcinko will be speaking and lecturing, signing and opining, teaching and preaching, storming and performing at many locations throughout the USA this year! His tour of witty and serious pontifications may be scheduled on a planned or ad-hoc basis; for public or private meetings and gatherings; formally, informally, or over lunch or dinner. All medical societies, financial advisory firms or Broker-Dealers are encouraged to submit an RFP for speaking engagements: CONTACT: Ann Miller RN MHA at MarcinkoAdvisors@outlook.com -OR- http://www.MarcinkoAssociates.com

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