Cryptography, an art that has been in existence for thousand of years, continue to update and proliferate in modern day security. It is the process of hiding or coding information so that only the intended person and message was can read it. If you've ever engaged in a blockchain transaction, you may have encountered the need to sign something. This process involves the use of Public Key Cryptography (PKC), a technology not exclusive to blockchain but deeply integrated into its fabric.
PKC, is a cryptographic system widely used in both blockchain and traditional computing to encrypt and decrypt messages securely. In the context of blockchain, PKC takes on a central role in the creation, verification, and authorization of crypto transactions, giving rise to the term "cryptocurrency."
Public vs Private Keys
At the heart of PKC lies the concept of key pairs - a set of cryptographic keys consisting of a public key and a private key. Every wallet or account in the blockchain ecosystem possesses a unique key pair. Picture it as a special lock requiring a distinct key for both locking (public key) and unlocking (private key). The private key is comparable to an ATM pin or an account password, a confidential piece of information that must be safeguarded at all costs. On the other hand, the public key functions similarly to a user ID, visible to anyone and shareable to facilitate cryptocurrency payments.
It's essential to note that while the public key is akin to a user ID, it is not the same as a wallet address. The wallet address, comparable to a bank account number, is a unique identifier for routing transactions to the correct destination. Additionally, every wallet comes with a secret phrase, a string of words used to derive the private key. Safeguarding this secret phrase is crucial, as it essentially serves as the master key to your crypto wallet.
How it works?
When you initiate a blockchain transaction (sending cryptocurrency/putting up an offer), you will first need to request the recipient's wallet address. Once obtained, you input the necessary details, verify them, and then proceed to sign the transaction.
But what does it mean to sign a transaction?
Signing a transaction is essentially a verification step, confirming that you agree to the details of the transaction you are creating. In a simpler grain, when you trigger a transaction or perform any action in the blockchain, you need to validate that the provided details are accurate by signing or, in other words, verifying and authorizing the transaction. Essentially, it's a cryptographic process of endorsing and authorizing the transaction's authenticity.
Content above is purely my understanding and opinion at the point of publishing. It does not necessarily represent absolute accurate information but merely sharing of knowledge on my part. Comment below for any inappropriate/misinformation.
LeROI is a Singaporean working class guy who advocates financial literacy. You can support his cause by:
1) Registering a P0x account with his link: https://www.publish0x.com?a=pnel24wgbK
2) Following and tipping his articles: https://www.publish0x.com/leroi
3) Also on LeoFinance: https://inleo.io/signup?referral=leroi1
