In the blockchain world, private and public keys are fundamental components of cryptographic systems that ensure security, authenticity, and transparency. Whether you are a blockchain enthusiast, developer, or investor, it is crucial to understand how these keys work. Let’s take a closer look at their roles, how they operate, and why they matter.
What are private and public keys?
private key
A private key is a randomly generated string of numbers and letters used as a password. This is your digital signature and must be kept confidential. Losing or leaking your private keys could compromise your funds or sensitive information on the blockchain.
- Length and format: Typically expressed as a 256-bit hexadecimal number (64 characters).
Example: 3c1a7d1b3d8a2d9f5e6b8a6d2e5a8c6b9d2a3e4f1c8d5b7f4e3a7d1b2c8d9f6a
- Purpose: Used to sign transactions, prove ownership, and grant permission to spend or transfer blockchain assets.
public key
The public key is mathematically derived from the private key. When it is linked to a private key, the private key cannot be retrieved in reverse, ensuring security.
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Length and format: Also a long string, but may vary based on the blockchain’s encryption standards.
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Purpose: Share publicly to receive transactions. Others use your public key to verify your digital signature.
How do they work together?
key pair relationship
Using asymmetric encryption technology, private and public keys work in pairs. This encryption principle ensures:
- Private keys are used to sign materials (such as transactions).
- The public key verifies the authenticity of the signature.
transaction process
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Signing: When a user initiates a transaction, their private key signs it. The signature proves that the transaction came from the legitimate owner.
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Broadcast: The transaction is broadcast to the blockchain network along with the signature and public key.
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Verification: The network node uses the public key to verify the signature to ensure the validity of the transaction.
Why are private and public keys important?
Safety
The private key is the ultimate security. As long as it’s kept secret, your blockchain assets are safe. Public keys ensure secure communication without sharing sensitive information.
Decentralization
Key pairs enable decentralized ownership and transaction verification without relying on centralized institutions such as banks.
transparency and immutability
Public keys allow anyone to verify transactions on the blockchain, thereby increasing transparency. Due to encryption security, the integrity of the data remains intact.
Practical application
Cryptocurrency wallet
Private keys are stored in the wallet, allowing access to cryptocurrency funds. The wallet generates public keys to receive payments.
smart contract
Public and private keys are essential for interacting with smart contracts, ensuring that only authorized users can trigger contract execution.
digital signature
In enterprise solutions, digital signatures based on key pairs can securely authenticate documents and transactions.
Best practices for managing keys:
safe storage
Use a hardware wallet or cryptographic software wallet to store private keys.
Avoid saving keys in plain text or on devices connected to the Internet.
backup
Maintain multiple backups of private keys in a secure location.
Use physical media such as a USB drive or write it down and store it safely.
Two-factor authentication (2FA)
Enabling 2FA adds a layer of security when accessing wallets or accounts associated with your private keys.
Be wary of phishing attacks
Be sure to verify the origin of any request for your private key. A legitimate entity would never make such a request.
