When it comes to wallets, nothing is possible without private keys. They are the very essence that makes the wallet and what allows you to store your assets securely. By understanding more about private key and what it does, you will know more about how to keep your crypto secure.
What’s a Private Key?
A private key is a randomly generated string of numbers and letters that is used to secure access to a digital wallet or account. It is created using a cryptographic algorithm that produces a unique and mathematically related public key.
To generate a private key, a random number generator first produces a series of random numbers that serve as the basis for the private key. These random numbers are then processed using a mathematical algorithm, such as the Elliptic Curve Digital Signature Algorithm (ECDSA), to generate the private key.
The private key is then later stored securely inside a wallet to prevent anyone from stealing. The private key is used to sign and authorize transactions on the blockchain and is required to access and manage your cryptos and NFTs.
Private Key vs Public Key
Private Key and Public Key are two sides of the same coin. The private key is generated first then the public key is later derived from it using a mathematical process known as asymmetric encryption. The public key is also very important for a wallet as it allows other people to transfer assets to your wallet.
Imagine a mailbox at your house. The private key is like the key that you use to open your mailbox. You need it to access whatever is inside the mailbox, in this case, your crypto assets. The public key is like the mailbox address, other people need this address to be able to send you mail.
While the private key must be kept secure by only yourself, at all times, the public key can be shared with other people. You do not want other people to open your mailbox with your key, but it is ok for other people to know your mailbox address so they can send you mail. This is a simple but accurate analogy of private keys and public keys.
The importance and significance of private keys
Private keys technically have importance for a wallet. Without private keys, we will not have a secure way and decentralized way to store our cryptocurrency. Apart from wallets that are generated from private keys, you can store cryptocurrency with an exchange. When you store your crypto with an exchange, your crypto is under their system. This means that if the exchange is not trustworthy or is an easy target of hacking, you may easily lose your crypto. You do not have full control of your assets because you cannot control what happens to the exchange.
With a private key, however, you have full control of your assets. The randomly generated private key is unique only to you, which makes your wallet only accessible to you. As long as you keep your private key and your wallet safe, then you will not lose your crypto.
Private Keys and Crypto Wallet
Crypto wallets are made to generate private keys and host the wallet account that comes with the generated private keys. They are designed to keep the private keys safe so that no one else will have access to your crypto.
The degree to which the private keys are protected differs per wallet so you must also choose carefully which wallet is most suited to keep your private keys safe.
Wallets like the ELLIPAL Titan Cold Wallet are perfect for protecting private keys. The ELLIPAL is completely air-gapped, and cannot be connected to any kind of network or devices. This protects your private keys from online hackers. The ELLIPAL also comes with an anti-tamper feature that automatically deletes your data the moment it detects a breach. This feature protects your private keys from offline hacking. In addition to safety, the ELLIPAL is very simple to use and has a good design. It is a highly recommended wallet for both beginners and experts in crypto.
Gadgets like ELLIPAL JOY are also very important nowadays. ELLIPAL JOY is a small device that helps you generate private keys. When generating private keys, you will also need to consider if the keys are generated from a trustworthy source. The ELLIPAL JOY is an open-source private key generation device, so you can be sure that your private key is truly secure and trustworthy.