Private Key

BlockworksJun 25, 2019 ⋅ 1 min read

Written by Max Hinchman

Introduction

Private-public key cryptography is used by Bitcoin and other blockchain products for sending and receiving goods. In the case of bitcoin, the private-public key cryptography is used to send and access bitcoin. However, private and public keys perform different tasks. A common example to explain the private-public key relationship is a mailbox. Anyone can deliver mail to the mailbox using just by having the address (public key), but the mailbox can only be accessed by the owner with a key (private key).

In reality, a private key is just a large number that digitally signs transactions or message. The public key is generated based off the private key using Elliptic Curve Digital Signature Algorithm (ECDSA). When a bitcoin is sent to another person, the private key signs a message sent to the blockchain that says that you are the owner of a certain amount of bitcoin belonging to a public address and you authorize the payment to another address.

Suggested Reading

Bitcoin Private Keys: Everything You Need To Know by Sudhir Khatwani

A Beginner’s Guide: Private and Public Key Cryptography Deciphered by Chris Coverdale

Let us know what you loved about the report, what may be missing, or share any other feedback by filling out this short form. All responses are subject to our Privacy Policy and Terms of Service.

Suggested Research Based on your Watchlists

Create a new watchlist
Outline
  • Introduction
  • Suggested Reading