What is Private Key Crypto?This is a type of private key utilized to connect with your account, similar to a password used for connecting with a bank account. The primary function of a private key is to provide you with the ability to prove ownership of a wallet address. This enables you to have complete authority over the usage and expenditure of the assets within this wallet account. A private key can take different forms such as a 256-bit binary, 64-digit hexadecimal, QR code, or a memorable phrase. For instance: 1a6bb7e9b25bbed5f513bd1dd1866d12c1010a6d2a138f657aaf291064e11b7c The Private Key can vary depending on the type of cryptocurrency at hand, and it is commonly encoded using a 256-bit algorithm. This type of encryption is exclusively reserved for the proprietor of the key.
Features of Private Key Crypto
- The Private Key comprises characters in uppercase, lowercase, and numeric forms.
- The intricate arrangement of characters within the Private Key is the result of random intermixing and swapping, without following any specific pattern. This characteristic poses a significant challenge for hackers attempting to breach a user’s assets.
- Each Private Key possesses the capability of producing a unique address that facilitates the execution of transactions within a wallet.
What is Public Key?In essence, Public Key is a character string used to decrypt messages in an algorithm, but it can be widely distributed. An elementary example of Public Key is a user’s wallet address. The Public Key has the following form: 3048 0241 00C9 18FA CF8D EB2D EFD5 FD37 89B9 E069 EA97 FC20 5E35 F577 EE31 C4FB C6E4 4811 7D86 BC8F BAFA 362F 922B F01B 2F40 C744 2654 C0DD 2881 D673 CA2B 4003 C266 E2CD CB02 0301 0001
What is the difference between Public Key and
Private Key Crypto?Both Public-Key and Private-Key have been constructed to verify transactions, enabling any expenditure to be authenticated as having been signed by all parties involved in the transaction, thereby preventing any potential tampering. Yet, there are some distinctions between these two types of keys as follows:
Public Key Crypto
Private Key Crypto
|Grant permission for receipt of the cryptocurrency and identification of the associated account. It is possible for anyone to find a public key on the ledger of the blockchain.||To enable users to utilize coins during connection, the Private Key serves the purpose of proving ownership of the corresponding public key.|
|Public||Must keep it a secret|
|It is not possible to derive a Private Key from a Public Key.||It is possible to derive the Public Key from the Private Key.|
|The disclosure of one’s Public Key has no bearing on the assets belonging to the individual concerned.||In the event that the Private Key is exposed, there is a risk of permanent loss of the assets. It is essential to carefully safeguard the Private Key to prevent any potential unauthorized access or breach.|
|The shortened version of Public Key is commonly referred to as an Address, which serves as a unique identifier for a wallet or account on a blockchain network.||There is no shortened version|
Mechanisms and algorithmsThere are two distinct types of keys used for encryption and decryption in Public Key systems. The Public Key is available to anyone, whereas the Private Key is only accessible by its rightful owner. In an exchange between two parties, a symmetrical key is generated. This symmetrical key, known as the Private Key, is shared between the sender and the receiver via an encrypted message.
EfficiencyThere exists a difference in the authentication speed between Private Key and Public Key. In this regard, Private Key only requires one key whereas Public Key necessitates two keys.
Privacy abilityThe Private Key is known for ensuring excellent privacy for its owner; however, losing the Private Key would result in the inability to recover and access encrypted files. The complexity of this type of key also makes it challenging to remember, as it is a combination of complex numerical sequences. On the other hand, the Public Key is easy to remember and locate, without any risks associated with key loss.
Digital signaturesThe Private Key can serve as an electronic signature while the Public Key is used for verification. The use of electronic signatures provides several security benefits, including verifying the legal identity of the user and ensuring the integrity of the message.
Encryption and DecryptionThe Public Key plays a critical role in encryption, while the Private Key is capable of decrypting encrypted information. In other words, the Private Key can decrypt messages that have been converted. Typically, the Public Key is utilized in protocols, system software, or applications to ensure security in the online space.
How Public Key & Private Key workPublic Key and Private Key are two cryptographic keys that are mathematically related to each other based on the secp256k1 elliptic curve. The Private Key is a randomly generated number on this curve, while Public Key is also a point on the curve. However, instead of being randomly generated, it corresponds to the Private Key. The distinctive feature of this elliptic curve is its “trap door” function, which allows us to easily find the second corresponding point (Public Key) when we create a point (Private Key) on the curve. However, if we only know the second point (Public Key), it is virtually impossible to find the first point (Private Key). Therefore, when we possess the Private Key, we can always know the Public Key. Conversely, if someone knows our Public Key, they cannot rely on mathematical methods to find the Private Key. The specific operational mechanism of these two types of locks can be described as follows:
- The transaction is encrypted using the public key of the recipient and decrypted using the accompanying private key.
- Upon completion of the transaction, a signed agreement will be provided as evidence that no modifications were made. The sender will electronically sign the transaction to demonstrate their ownership rights to the specified amount of assets.
- The transaction is eventually uploaded onto the Blockchain and automatically verified by Nodes. If the transaction fails to be verified, the network will reject it. However, if the transaction is successfully processed and confirmed, it is recorded on the Blockchain ledger and cannot be tampered with. At this point, the assets are sent to the designated Public Key of the receiver. The entire process serves as an automated means of verification and authorization for secure and trustworthy transactions within the network.
For example:In order to transfer 1 BTC from Person A to Person B, Person A must obtain the Public Key of Person B to encrypt it with the amount to be transferred. Subsequently, Person A signs the transaction and sends it to the Blockchain. Upon successful encryption and verification of the transaction, Person B receives the 1 BTC sent by Person A. Person B will then need to use their Private Key to decrypt and utilize this BTC. In this scenario, if there are attackers who attempt to breach the server and steal the BTC amount, they will be unable to do so as they lack the Private Key. The decryption of the transaction is only possible by person B who solely possesses the Private Key.
Public Key & Private Key in CryptoIn reality, a comprehensive understanding of the mechanisms behind Private and Public Keys is not necessary. The crucial aspect to grasp is the practical application of these two types of keys. Upon creating an electronic wallet (Wallet), both Public Key and Private Key will be provided to you. Please note that the Public Key will be given in a reduced form as the Address (wallet address). This Address can be shared with others should they need to transfer funds to your wallet. Please use the Private Key to access and utilize the funds stored within the wallet. Any person has the ability to send funds to your Public Key. However, in order to receive and utilize such funds, it is necessary for you to possess the corresponding Private Key that enables unlocking of the assets and proves your ownership rights over them.
What is a passphrase?A passphrase typically consists of 12 to 24 characters used for encryption, such as the string, “lecture estate tube tunnel decade tone flash army pink nice net trap.”
What do Passphrase and Private Key Crypto have in common?The common purpose of Private Key and Passphrase is to ensure the security of one’s account. It is possible to use both types of cryptography to gain access to a wallet or to recover one. Furthermore, due to their length and complexity, both Private Key and Passphrase offer superior security compared to regular Passwords.
Difference between Passphrase and Private Key CryptoEssentially, a Passphrase can represent multiple wallets while a Private Key can only represent a single wallet. For instance, when creating an account on Metamask, one will have a Passphrase for their entire wallet. However, each wallet within the Metamask account requires a separate Private Key. When logging into Metamask on a different device, one will need to provide the Passphrase first before using the Private Key for each specific wallet. In other words, the Passphrase has control over all of one’s Private Keys. The Passphrase is a sequence of English words that are encrypted based on all Private Keys to create and restore the wallet. Distinct differences between Passphrase and Private Key can be easily noticed by looking at examples of both. The Passphrase is more easy to remember, read, and take note of compared to the Private Key.
Pros and cons of Private Key CryptoThe Public Key, Passphrase, and Private Key all play distinct roles in enabling secure, convenient, and efficient transactions and asset storage. Of these, the Private Key assumes a critical function with regard to each individual wallet or transaction. The Private Key offers distinct advantages in terms of privacy and security, which are almost absolute. Nevertheless, its limitation lies in its myriad random characters that make it challenging for individuals to commit to memory. It is therefore imperative not to disclose this information to anyone and to safely store it using secure methods to avoid potential loss or forgetfulness.
How to secure Private Key safelyCurrently, there are numerous methods available for individuals to store their digital assets. However, in general, there are two primary ways to store cryptocurrencies: hot wallets and cold wallets.
The fundamental premise of asset storage within any type of wallet is that the assets themselves remain on the Blockchain network, while the holder maintains control only via their private key. As such, the most secure approach to protecting one’s assets is to ensure absolute confidentiality of one’s private key.The security level for hot wallets is not high due to their continuous connection to the Internet, thus providing hackers with ample opportunities to attack users’ assets. Hackers can target hot wallets, laptops, PCs, phones, or any other devices connected to the Internet. Therefore, to minimize the risk of asset theft, users must refrain from storing private keys on devices connected to the Internet and should instead opt for offline methods such as storing private keys in a physical notebook or storing them on other offline devices. In short, users must prioritize the security of their digital assets by adopting secure measures like storing private keys offline to protect themselves from potential attacks. With regards to cold wallets, the level of security is heightened as the device can disconnect from the internet when not in use. However, its limitation lies in the possibility of loss, damage, or malfunction of the physical wallet, rendering it unusable. In order to avoid such situations, it is crucial to store the recovery keywords in a safe place for account restoration when necessary. These keywords are provided upon wallet creation. Similarly, for hot wallets, it is advisable to record this information in a secure ledger, refraining from storing it on internet-connected devices or taking pictures of the recovery keywords. Additionally, it is recommended to have two cold wallets to guarantee immediate backup in case of device failure.
Other commonly utilized techniques include Bookmark or Google Authenticator, among others.With the shared information, it is likely that you have gained a fundamental understanding of what Private Key is, as well as the differences between Private Key, Public Key, and Passphrase. From there, it is hoped that you will discover appropriate methods for storing your codes while grasping the roles of each key type in relation to your assets.
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