Blockchain technology handles key management for users through the use of public and private key pairs. When a user creates an account on a blockchain network, they are provided with a unique set of keys - a public key that is shared with others to receive transactions, and a private key that is kept securely and used to sign and authorize transactions. The private key should only be known to the user to ensure the security and integrity of their transactions on the blockchain. By using cryptography and digital signatures, blockchain technology ensures that only users with the correct private key can access and manage their accounts, providing a secure and decentralized way to manage key authentication and authorization.