Private keys and Public addresses:
Why you should know about them
As I stroll through Cryptown, I want to give you an insight into some of the need-to-know information when entering the world of the Blockchain! For this week’s blog, we’re delving into the world of cryptography and private keys, but as always, explained in ways the average user can understand. Private keys and public addresses are critical and if you want to keep all those shiny new coins safe and secure, then keep reading while we break down some of the vital components.
What’s the difference between a public address and private keys?
Private keys use a sophisticated form of cryptography to allow a user to access their cryptocurrency. It’s a series of numbers and letters which are encrypted by way of cryptography and used to access funds. Public addresses also use cryptography to change data into a series of numbers and letters, but this sequence is an address you can send your tokens too. So your public address is where funds will be deposited into and your private keys used to secure your funds. Think of your public address as a post box and your private keys as the key to that post box.
The difference about knowing your public address?
It is crucial for anyone buying or selling crypto to know what address to send out and use. A public address is used on different app-based exchanges, and you can buy and hold coins, if you ever want to move your coins to another exchange platform or an external wallet, then knowing your public keys are essential. But, in reality, it’s not as complicated as it sounds.
The benefits of using private keys
Cryptography is used to scramble and encrypt your data. When data is put into an encryption algorithm using the key, it comes out the other end randomised and encrypted. The benefits are increased levels of confidentiality and integrity as the information cannot be modified in any way between sender and receiver.
Private key plays a significant part in privacy because without the key. No one can access your data, making it very secure and confidential. Which makes it incredibly personal as without the private key to decrypt data in the public address, no one can access it. As well as the financial benefits, the data storage implications are enormous. Storing data on a blockchain that is only accessible with the users private keys will eliminate data breaches such as the infamous Ashley Maddison and Equifax hacks that lost countless users’ data.
Peace of mind
Using your private keys to access your funds gives your full control over your finances when using cryptocurrencies. It’s your responsibility to keep your keys safe and secure as if someone else gets their hands on them they have full control of your funds. Through using a hardware wallet such as a Ledger (hard wallet), you give yourself an added layer of protection and management over your hard-working assets.
So in-a-nutshell, private keys and public addresses explained faster than Billy-the-Kid on the draw at High Noon! Remember, private keys and public addresses are what you’ll use when you’re sending, receiving or transferring ownership of any cryptocurrencies. Hope you’ve found this insightful and remember to keep those private keys safe and as close as that holster holding your bags of golden nuggets!