Cryptocurrency Private and Public Keys Explained
Cryptocurrency (crypto) has become a hot topic in the financial world. One of the key properties of crypto’s security is the use of public and private keys. In this post, we'll take a closer look at what these keys are and how they work.
Private Key
Note: Not a secure private key. Do not use
A private key is a “secret code” that acts as a password to access your crypto wallet. It is a 256-bit encryption key consisting of numbers and letters that must be kept safe and secure, as it is the only way to access your funds. If someone gains access to your private key, they can steal your cryptocurrency and you won't be able to retrieve it.
Public Key
Note: This public key is connected to the private key above. Do not use
A public key, on the other hand, is a public address that is used to receive cryptocurrency. It is similar to a private key in the sense that it’s a long string of numbers and letters, but the public key can be safely shared with others to receive cryptocurrency.
How They Work Together
When you receive cryptocurrency, they are sent to your public key address. Only the person with the coupled private key can access and spend the crypto. This is achieved through a process known as cryptography, which uses complex algorithms to ensure that the transactions are secure and can only be accessed by the person with the private key. As you can see, both private and public keys look similar, but they are very different.
QR Codes
Both public and private keys utilize the use of Quick Response codes (QR codes.) A QR code is a type of barcode that can store data and be read quickly using a smartphone or other device. The data can be in various forms such as a URL, plain text, or in this case, public or private keys. The code consists of black squares arranged on a white background, forming a pattern that can be decoded by a QR scanner. By embedding keys in QR codes, it makes sending and receiving payments seamless.
To summarize this, a private key is used to access and spend crypto, while the public key is used to receive it. It's important to keep your private key secure, as it is the only way to access your money. Public keys can be safely shared, as they cannot be used to spend, but rather only receive. Understanding the concept of private and public keys is crucial for anyone who wants to use Bitcoin or other cryptocurrencies.
