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What is private key? Difference between private key and public key

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What is private key?

A private key is a coded string of information that is used to control and manage cryptographic assets. To create a key pair, each private key typically has a matching public key.

private key
How private key work

The private key in cryptography is used to both sign and decrypt data. When creating digital signatures and verifying user identities in token transactions, private keys are frequently utilized. To reduce the chance of assets and personal data being stolen, investors must thus take great care to encrypt their private key.

Characteristics of private key

  • Confidentiality: Only the owner should have access to the private key; it is considered confidential information. A private key’s disclosure may result in the loss of valuable digital assets or private data.
  • Extended and distinct character string: A private key is usually a lengthy string of characters, both alphabetic and numeric. This character string is generated in accordance with certain guidelines to guarantee uniqueness and reduce the risk of hacker intrusion.
  • Ownership: A blockchain address’s private key holder has the authority to manage and carry out transactions pertaining to the cryptographic assets connected to that address.
  • Signing and decryption capabilities: Data encrypted with the matching public key can be decrypted, and transactions or messages can be signed using the private key.
  • Security and safety: In crypto and blockchain systems, private key security plays a crucial role in safeguarding user data and digital assets. To protect their private keys, investors should employ safe, offline storage options.

How private key work

  • Create a key pair: First, a key pair with a matching private key and a public key is made. RSA, ECC, and other symmetric encryption techniques are frequently used for this operation.
private key
private key
  • Private key security: Only the asset’s owner is aware of the private key, which is extremely confidential. Frequently, private keys are kept on highly secure computer software, cryptocurrency wallet software, or secure hardware security module (HSM) devices.
  • Signing and decryption: Users utilize their private key to sign transactions or unlock data that has been encrypted using a public key. A digital signature is created for the data using the private key during the signing process, and it can only be verified by the matching public key. Data that can only be encrypted with the associated public key is decrypted using the private key. Another name for this technology is public key cryptography.

Advantages and disadvantages of private key

Advantages

  • Extremely secure: The length and randomness of the private key make it harder to guess or crack. A private key can offer very high protection for users’ personal data and digital assets.
  • Control: The individual with the private key possesses complete authority over the digital resource or data linked to the matching public key. This offers traders freedom and flexibility in handling assets and formulating investment plans.
  • Digital signatures: Using a private key, these signatures are a crucial method of identity authentication in online transactions. It is impossible to fake the digital signature created by the private key; it can only be validated using the matching public key.
private key
private key

Disadvantages 

  • Significant risk: In the event that the private key is misplaced or unrecoverable, the proprietor may lose all control over digital assets or crucial data. Expert investors frequently divide cryptocurrencies into several wallets due to this significant issue in the cryptocurrency space.
  • Security risk: If the private key is disclosed, someone else could use it to access digital assets or the owner’s personal data. Therefore, each user faces a significant barrier in protecting their private key.

Difference between private key and public key

Criteria Private key Public key
Nature                                            Confidential, cannot be disclosed to others. Public, can be shared with anyone.
Function Private key is used to sign and decrypt data encrypted by the public key. Data that is encrypted and that only the accompanying private key can decode is encrypted and authenticated using the public key.
Size, length Longer, usually random string of numbers and letters. Shorter, can be converted to text format.
Control Select how digital assets or data connected to the relevant public key will be managed and controlled. Use to accept and verify communications or transactions that have been signed with the relevant private key.
Performance Faster because only one key is required. Slower because two  keys are required.

Conclusion

For the purpose of maintaining integrity and privacy during on-chain transactions, a private key offers a practical means of safeguarding cryptographic assets. This reduces the possibility of unapproved access and token and data theft. To avoid any unfortunate circumstances, the owner must, however, appropriately store the private key and keep it secret.

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