Public vs. Private Crypto Keys: What's the Difference?
Although in the world of cryptocurrencies, there is a lot of technological jargon to study – it is always worth getting acquainted with the terms. If you own any type of cryptocurrency, you’ve probably heard of public and private keys. They are fundamental to the functioning of cryptocurrency and ensure that your funds are protected. But how do public and private keys actually work? Throughout this blog post, we will highlight the differences and clarify the importance of crypto keys whether public or private.
What does Blockchain mean for private and public keys?
The way Blockchain technology is scolded is based on cryptography – that is, encrypting user addresses, as well as other information using sophisticated computer operations. Cryptography is a key security factor that guarantees the security of crypto transactions. That’s why these digital assets are called cryptocurrencies. Your approach to blockchain is based on a special system that we categorize as public key cryptography.
Access to Wallet, and the funds contained on it, begins with a public key, that is, with a long series of numbers and letters that serve as your account number when interacting with the blockchain. Data that only you see is encrypted with your public key before it is published in the blockchain. In order to send you funds on the blockchain, senders use your private address – that is, a shorter series of numbers and letters derived from your public key.
Bitcoin vs. Ethereum keys
Bitcoin uses 256-bit private keys, while Ethereum uses private keys of 64 hexadecimal characters. Despite the differences between private keys in different blockchain protocols, what is common is that each private key is formed in a process known as public key cryptography (Public Key). Public key cryptography). As the name suggests, this process also forms public keys.
As both Bitcoin and Ethereum use the same elliptical curve in the process, the same pair of private/public keys can be used in the case of both.cryptocurrencies. However, the steps to convert the public key to address vary for Bitcoin and Ethereum.
What is a private key?
Your private key is about the most valuable piece of information you’ll ever get. It functions as a code and is required to carry out crypto transactions using your funds. It is effectively used to “sign” each transaction to confirm that you have approved it as a user. You should never share your private key with anyone because it gives you direct access to your cryptography. We can compare it to a password that gives access to your personal account. The private key works by decoding information that’s meant for you that’s published on the blockchain. In doing so, you are given access to data and crypto funds. In other words, a private key gives you access to your assets on the blockchain.
One of the reasons that contributes to the security of the private key is that there are so many possible combinations of numbers and letters. In fact, there are combinations of 2. to 256. degrees, or about 1.16 x 10^77. By comparison, astrophysicists believe that there are about 10^80 atoms in the entire universe. Mathematicians estimate that it would take about 325,000,000,000,000,000,000,000,000,000 years to guess a single private key by trial and error. Based on these estimates, breaking the private key seems like a mission impossible.
What is the initial phrase aka seed phrase?
The initial phrase comes in the form of 12 or 24 words that are essentially a representation of a long series of random numbers. However, we as users, do not see this string of digits, but see a version that is far easier to write down and remember.
Where is the starting phrase? If you use a software wallet, you may be asked to physically back up the initial phrase. Different wallets and wallet types have different backup processes.
This is what “path” looks like from a seed phrase to a public address:
Private key at Trust Wallet
We’ll show you what a private key looks like on the example of Trust Wallet, which is usually one of the hot multi-coin wallets that depend on the Internet, and are thus less secure than cold wallets that work offline. Trust Wallet supports a large number of cryptocurrencies from various blockhains – including Bitcoin, Ethereum, Binance Coin, Litecoin, XRP and others. Read more about crypto wallets in one of our previous blogs. The private key comes in the form of a random alphanumeric string of characters and can vary depending on the type of cryptocurrency for which it is used. When creating a private key, you are advised to always manually back up your wallet. Specifically, your recovery phrase or private key is encrypted on your device, but the best way to back up your wallet is to manually write down your recovery phrase or private key. Then no online service can capture information about your wallet. With Trust Wallet, as well as other hot wallets, they state that they have no record of your recovery phrase or private key, and that it is therefore extremely important to back up your multi-coin wallet. On the pages of the Trust Wallet community, read how to get a recovery phrase, but in general, your phrase serves you for recovery and is the key to your wallet. Remember, if you lose your recovery phrase, you’ll lose access to your wallet. Trust Wallet, as well as other crypto wallets can be downloaded or downloaded online, in Google Play or App Store depending on whether you are using an Android or Apple smart device.
What is a public key?
Unlike a private key, a public key can be viewed or shared by any user on a particular blockchain. Like a private key, a public key is also a long string of random characters and is unique to you and your property. Because public keys are so long, they are shortened to wallet addresses for faster transactions . A private key is an attempt to imagine a kind of password, and a public key as an email address or bank account number. Both keys serve to identify you or the account you own. Sharing your public key doesn’t put your crypto at risk because there’s no way it can be used to access or move your funds. Although public and private keys are used for different purposes, they are very closely related. In fact, the public key generates a private key and will always be paired with each other. But as we have stated before, it is almost impossible to retrieve someone’s private key from the public key. If someone tried, it would take billions of years to succeed. In general, with public key cryptography – public keys are encrypted and private keys decrypted – so no funds can be stolen using only the public key. Because of this, public keys do not need to be protected, but private keys absolutely must. Without public and private keys, conducting cryptocurrency transactions would be a less secure process. Without insight into who is moving funds from place to place and without a level of public key cryptography protection – there would be a lot more room for hacking.
Storage
Most cryptocurrency owners choose to store their private keys in their wallet, and today you can choose from a large number of available crypto wallets. Of course, each of them has its pros and cons. If you are one of the crypto investors who chooses to store your private key physically, without relying on the Internet – it is important that you “keep” it as safe as possible. However, there are also cases where your private key is “held” by a third party. If you are a custodial crypto wallet user, your private keys are held by the wallet provider. While some crypto users prefer this type of wallet for convenience, others prefer to “keep” their private keys to themselves. Namely, custodial wallets can pose a security risk, but they are necessary to carry out transactions.
Crypto capsules as a safe option
Crypto capsules are tools for security backup when offline storage of private keys, passwords, as well as wallet recovery schemes. We could say that the capsule is a safe for virtual valuables, and does not depend on the thread of one third party. In capsules, there is an element of engraving, which is the most proven and reliable method of storing information invented to date. Engraving achieves maximum longevity as codes and passwords are assembled manually from a partially random set of supplied circuit boards. Once the desired string is locked into any Cryptosteel unit, it essentially acquires the status of offline durability, and becomes resistant to physical damage, including fire, flood, corrosive conditions, accidents.
Now you know all about the difference between a private and a public crypto key, but also about the importance of keys to the security of your cryptocurrencies. In the following blog we talk about hot and cold wallet, and how and when to use which.
Until the next blog,
Your Kriptomat.hr team!
