It’s different to be a crypto investor than to invest in any other property. 

There is no cryptocurrency coverage, and this allows you to be a committed custodian of your own assets. 

Of course, the most important aspect of this is learning how to secure your Bitcoin and other investments of cryptography from people who want to steal them from you.

What is a Private Key 

A private key is a hidden password / number alphanumeric used to spend / send the bitcoins (crypto) to another Bitcoin (crypto) address. 

It’s a long 256-bit number that is randomly picked as soon as you make a wallet.

The degree of randomness and uniqueness are well specified for security purposes by cryptographic functions.

A private key, also known as a secret key, is a cryptographic function used to encrypt and decrypt data using an algorithm. 

Hidden keys are exchanged only with the creator of the key, which makes it highly secure. 

In symmetric cryptography, asymmetric cryptography and cryptocurrencies, private keys play an important role.

The difficulty and length of the private key decide how possible it is to execute a brute force attack by an interloper and try different keys until the correct one is found.

What is a Public Key?

Public key cryptography uses a public key pair and a private key to perform various tasks.

Public keys are circulated widely, while private keys are kept secret.

Using the public key of an individual, a message can be encoded so that it can only be decrypted and read by the person with the private key. 

Using a private key, a digital signature can be created to prove that the message has been created by the private key holder and has not been changed since.

Difference Between Public Key and Private Key

A public key is an address that receives only. 

They use this key when someone sends you Bitcoin or other cryptocurrencies. 

Revealing your public key to users is perfectly safe, and there is no risk of losing cash. Just don’t mix up the public and private keys.

But, even people with the public wallet address can see how much bitcoin you have, making you a priority sometimes. 

To avoid revealing the amount of money they have, most people store their funds in various wallets.

How Does a Private Key Function? 

Personal keys are used to make transactions that are permanent. Yeah, it’s irreversible!

They’re the secret to investing your bitcoins and sending them to anyone and everywhere. 

Mathematical signatures that are connected to each transaction guarantee this irreversibility if we use private keys to transfer bitcoins.

And for each transaction, even though they are created from the same private keys, these signatures are different. 

This feature makes it impossible for them to copy. 

The client can use the same private key with trust over and over again.

In addition, the signatures are related to Bitcoin addresses in mathematical terms. 

This mathematical relationship helps to confirm that only that particular account holder who wants to transfer bitcoins is the signatures.

How Do You Secure/Store Your Private Keys?

It is not advisable to store your private keys on your computer which is accessible to the internet as this could be hacked/compromised. 

People can find these files and use malware or other forms of attack to take them from you.

Alternatively, place the folder on a thumb drive or other unplugged and inaccessible external storage unit. 

This will prevent people from using malware to steal your passwords.

If you’ve got a safe, it would be a good place to keep it. 

Never allow access to the private key for anyone. 

Cryptosteel is a great option to store your private keys offline. 

Having multiple copies can even be a good idea just in case the thumb drive is inoperable or is even lost.

Example 

If Steve decides to buy a drink for 1 bitcoin from Hannah’s shop, Steve must show his public key and digital signature (the private key will be added to the transaction to create the unique digital signature) to spend those bitcoins.

Only someone with knowledge of the private key can generate this signature, which in this case is Steve. 

Moreover, anyone with access to the public key or digital signature can use these two elements to confirm that Steve does actually exercises control over those 1 bitcoins. 

This is how everyone else can check and approve Steve’s payment on the Bitcoin network.

Conclusion 

We hope our Private Key vs Public Key article will help you understand how it works. 

If you’re new to cryptocurrency and blockchain, you can learn and understand each of these principles. 

As a user of cryptocurrency, you need to take care of your private keys. 

Don’t share it with anyone or you’re going to lose it. 

There are many online scams which will try and get access to your keys so be careful.

Share via
Copy link
Powered by Social Snap