Blockchain technology uses a variety of cryptography. The cryptography field is essential to many cryptocurrency systems including Bitcoin. Cryptography is fundamentally described as the practice of secure communication while third parties are present. It allows for efficient data storage and effective communication of that data in a secure mode. Therefore, any present third parties cannot read anything that was communicated.
The underlying development of private and public blockchain keys primarily uses cryptography. These keys are proven to transform the cryptocurrency systems into safe networks where users can securely execute transactions. The ownership concept of a crypto system fundamentally features three interconnected components.
These components include addresses, digital signatures, and digital keys (Public and private). To comprehend the digital key cryptography, the initial concept that requires exploration is the idea of public and private keys.
What is a Public Key?
The public key cryptography always uses a private key and a public key to accomplish all its tasks. The public keys are extensively distributed. It is probable for a user to encrypt a message using someone’s public key to guarantee that only the person holding the private key can decrypt that message and read it. Blockchain primarily uses public key cryptography.
According to the cryptography principles, public- private key cryptography is primarily based on an easy-and-hard problems system. Some problems are easy in one way but difficult when considered in another way.
What is a Private Key?
The private key has alphanumerical characters that enable users to access and as well control their finances in their matching crypto address. These private keys are principally used to sign transactions that let users spend their funds. The private key generates a unique digital signature that matches with every executed transaction. Therefore, users spend their money by verifying their ownership of those funds.
How do these keys work?
For instance, in multiplication one can come up with any two numbers and easily multiply them. On the other hand, challenges arise whenever a user wants to get all the numbers that can feature in a multiplication to get a given result. That is basically how public-private key cryptography functions.
In blockchain, a simple mathematical problem is primarily used to create a message that is made considerably challenging for the message to be demystified by unauthorized third parties. Thus, the public and private keys play fundamental roles in blockchain. Cryptos use elliptic curve multiplication as the underpinning for their cryptography.
The mathematical functions featuring in public key cryptography prove easy to calculate in one direction. Nevertheless, they become utterly impossible to solve in the opposite direction. As a result, this characteristic facilitates the establishment of digital secrets and unforgettable digital signatures that are essential for ownership of the decentralized blockchain networks.
The Major Difference
In the crypto world, the one-way function makes use of the private key as an input to produce the public key output. For that reason, private key owners can allocate their public key confidently to the intended recipients with nobody having the capacity to reverse the function.
Thus, the public and private keys are an integral component that makes the blockchain network highly secure.