Understanding wallet addresses, public keys, and private keys is crucial to understanding how cryptocurrencies work, so in this article from the Bitdemy website, we will discuss the Difference Between Private Keys and Public Cryptocurrency Addresses.
General points
- A wallet address is a randomly generated set of numbers and letters.
- This set usually consists of 26 to 35 alphanumeric characters.
- A wallet address is ideally a one-time generated address by a wallet.
- Wallet addresses are required to send or receive digital assets.
- Cryptocurrencies are not actually stored in a wallet.
- Public and private keys are required to access the wallet address.
- A wallet is a place where a set of addresses is stored.
- Never share your private key with others.
What is encryption?
To understand the difference between private key and public address, we need to know about encryption. The term encryption has Greek roots and originally means secret writing.
Over time, Cryptography evolved from intelligence agencies and the military to write and decode confidential messages and became a separate branch of computer science.
Like the internet, the origins of digital currencies can be traced to academic and military use cases that eventually expanded into the private sphere.
People involved in this movement call themselves “cyberpunks” and have been advocating for a shift towards privacy and greater control over our data since the late 1980s.
The origins of digital currencies can be traced to academic and military use cases, which eventually expanded into the private sphere.
Why do cryptocurrencies like Bitcoin use a two-key system?
مفهوم اصلی پشت سیستم دو کلیدی و تفاوت بین کلید خصوصی و پابلیک آدرس به شرح زیر است:
The public key allows you to receive transactions, while the private key is necessary to send transactions.
When we look at how this ingenious system works, it gets a little more complicated.
The use of two different keys (a public key and a private key) is called asymmetric cryptography, which is a vital aspect of a blockchain. The two keys are mathematically linked to each other.
The unique public key has its origin in the private key.
This connection allows users to create unforgeable signatures, which can only be verified by other network participants who know the corresponding public key.
Using two different keys – a public key and a private key – is called asymmetric cryptography.
What is the difference between an address, a key, and a wallet?
There are many misconceptions about the difference between addresses, keys, and wallets. To provide more clarity on this topic, let’s examine their features one by one.
Recommended video: Metamask wallet tutorial
The difference between private and public keys in crypto - Addresses
An address is a randomly generated set of numbers and letters that represents a unique type of number similar to a bank account number.
For example, here is the Bitcoin genesis address – the first Bitcoin address: 1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa.
The difference is that an address can be created for free by anyone in seconds without the need for a third party. You can create as many public addresses as you want or need.
You can freely share your public address with others.
This way, people can send cryptocurrencies to your address.
Because the Bitcoin or Ethereum networks are not anonymous, but rather pseudonymous, your holdings and transactions are visible to anyone who knows your public address.
The difference between private and public keys in crypto - Keys
There are two types of keys: public keys and private keys. Public keys are comparable to account numbers.
They can be freely shared with everyone and anyone can potentially send transactions to them.
On the other hand, private keys, as their name suggests, must be kept private.
You can think of them as a kind of PIN or verification code that, together with the corresponding public key, gives you access to the actual funds on the blockchain.
You should never, under any circumstances, share your private key(s) with anyone else.
It is best to store them in the most secure way possible (e.g. on a paper wallet or a hardware wallet).
Note that keys are not stored on the blockchain.
Instead, they can be kept in a (encrypted) file, which can be stored anywhere and accessed offline.
Wallet
You can think of a wallet as a kind of encrypted virtual key chain that contains all the information needed to access your funds on the Bitcoin blockchain.
A wallet combines and contains both your address(es) and your digital key(s).
The simplest form of wallet is a file containing a database.
It can also be stored offline because it does not require a connection to an actual blockchain.
امیدواریم که تفاوت بین کلید خصوصی و پابلیک آدرس If you have any questions, you can ask them in the comments section.
