Cryptocurrency is a digital form of currency to carry out transactions on a computer network not supervised by any superior authority, bank, or government. It’s privately encrypted, and nobody can identify the flow of transactions. Here are the important points about crypto. It’s completely digital and is stored in digital wallets. Bitcoin being the first and most popular cryptocurrency, Bitcoin is very popular amongst traders.
What is a private key?
We humans always want our precious things to be locked and kept safe. Similarly, a private key is a password, a string of letters and numbers that keep your crypto safe and secure. It’s an intricate password that cannot be easily guessed or hacked. The security of your cryptocurrency entirely depends upon the length and the complexity of your private key. The private key is used for the encryption and decryption of the data in the cryptography. The moment you enter your private key, your virtual vault unlocks.
A private key is a significant part of cryptocurrency as it keeps it safe and takes care of encryption and decryption. The private key should only be shared with the authorized parties to ensure the security of your digital money.
How do a private key work
Private key encryption is also called symmetric encryption. Here, the same private key can be used for encryption and decryption.
Private key works as follows
● Create a one of a kind private key
The first step you have to follow is to create a very complex private key that is a combination of letters and numbers. You can use special software to create a private key that is very difficult to guess.
● Private key storage
After your first step is complete, the next thing is to store your private key, which is as important as generating a new one. The private key should be stored either online or offline. You can store it on a computer to help you carry out encryption, decryption, and your private key generation. Moreover, a private key should also be secure with a password for added security.
● Exchange of the private key
A private key caters to both encryption and decryption, and thus, while using it for encryption, it needs a key exchange. The key exchange makes it possible for parties to safely share the private key.
● Private key management
Private key management ensures that the same private key is not used for a very long period. You can say that it helps the old private keys to retire safely without being misused.
Why you should use private encryption keys
● Keeps your digital money safe
Undoubtedly the private key keeps your digital vault safe and sound. It’s suggested to always make your private key as complicated as possible. It should be an intricate combination of letters and words to keep it safe from dictionary attacks.
● A speedy process
Symmetric key encryption is a speedy process as compared to asymmetric encryption. It’s possible because of the use of the public-private key pairs.
Difference between private key and public key
● Talking about the private key, the encryption key converts the plain text into the encoded text. This text is known as ciphertext. The encryption key used here can be either the private key or the public key.
● After the encryption process and converting the plain text into the encoded one comes the decryption procedure. Decryption is important so that the receiver can understand the original message.
● In simple words, the difference between a private and a public key is that one helps in encrypting the data. At the same time, the other one is useful in decrypting the data for the receiver’s better understanding.
● A private key ensures the safety and security of your digital money, and thus, you should always make sure that you create such a strong key that safeguards your data.
● A private key helps encrypt the data, whereas a public key helps decrypt the data.
● Cryptocurrency is the new age currency and thus, has many scavengers flying upon it to have their hands over it unethically. So, it’s important to use private keys to protect your currency and supervise your digital wallet.