What You Need to Know About Public and Private Keys in Cryptocurrency World  | by Mazn Adnan Shkoor | The Startup | Medium

A In order to receive cryptocurrencies into a user’s account, the user needs a public key. Security in the crypto economy is ensured by the public key and the private key.

An explanation of how a public key works

The first time a user transacts with Bitcoin or an altcoin, he or she creates a unique pair of private and public keys. These alphanumeric keys help keep a user’s digital holdings secure in the digital ecosystem by stringing together long alphanumeric strings.

As the user’s digital ID, the private key is known only to him or her. A user’s private key authorizes them to make purchases, withdrawals, transfers, or perform any other operation on their account. Both the private and public keys are stored in a digital Bitcoin wallet after a sophisticated algorithm is applied to the private key.

In order to get a transaction finalized on the blockchain, a user has to submit it to the network where distributed nodes determine whether the transaction is valid before finalizing it.

Transactions are digitally signed before they are broadcast using the private key. Private keys are not disclosed by the signature, but it proves ownership of them. Due to the fact that a public key is fashioned from a private key, the public key can be used to prove that a digital signature was created with his private key. When a transaction is confirmed valid, the recipient’s public address is used to send the funds.

A hashed version of the public key is used for the public address. Obtaining the public address involves compressing and shortening the public key, which is a long string of numbers. Public addresses are created when the private key generates the public key.

The public addresses of two parties are revealed each time one sends the other tokens or coins through an agreement. They function similarly to bank account numbers. To send funds, the sender needs the recipient’s private key, which he will then be able to use to spend or withdraw the funds. Using the sender’s public address displayed on a recipient’s screen, the recipient can verify the sender’s batch of coins.

A few special considerations

Despite the fact that the public key and address can be calculated from the private key, the reverse case is almost impossible.Despite the fact that the public key and address can be calculated from the private key, the reverse case is almost impossible.

To keep the cryptocurrency network secure, the network uses mathematical functions to prevent a private key from being derived from a public key. This is because even everyone on the network can see the public key and its hash version.

If any Bitcoin or altcoin located at an address associated with a user’s public key is lost, it will be forever inaccessible since it’s impossible to regenerate the private key. In the opposite case, users who lose their public keys can have them recreated with their private keys.

Hopefully, you understand how the public key works in the crypto world. Security is all that matters in today’s time. And your understanding of public and private keys is a must in case you are thinking about buying Bitcoins or any currency.

By Zigong