It’s Day 11 of #web3glossary!
They say good things take time, and that’s why the thread is a little late!🙃
K: Keys
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If you’ve dipped your hands in the world of cryptocurrency, you’ve probably come across the concept of crypto wallets, and may have heard of private or public keys. But what exactly are they?
Lets’s start with crypto wallets👇
They help you send, receive, and spend cryptocurrency. It also holds your keys and provides secure access to your wallet.
We have a few types of wallets
📌Hardware wallets: Where your keys are stored offline
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📌Custodial wallets: a platform looks after your private key. Third party has full control over your funds while you only have to give permission to send or receive payments.
📌Non-custodial wallets: you control your private keys with no third-party involvement at all.
Essentially, all wallets need private keys to secure it. But, what are private keys?
👉Private keys are like your house keys🔑. And your house address is like your pubic key. People need your address to reach your house, but can only enter with your house keys.
Private keys represent final control and ownership of cryptocurrency - like a password. They’re also used to sign transactions and prove ownership of a blockchain address. In case of Bitcoin its a 256 bit alphanumeric string
Public key is designed to be disclosed so that you can receive cryptocurrency. It’s linked to your private key which is needed to unlock the public key.
Public key is created from the private key through a mathematical algorithm, while the reverse isn't computationally feasible
Public key is designed to be disclosed so that you can receive cryptocurrency. It’s linked to your private key, which is needed to “unlock” the public key.
If you’re unable to access it for some reason, you’ll likely be unable to access your coins.
Thats a wrap for Day 11!
I’ll be sharing information on the new vocabulary of the web for next 30 days.
It’s like a free crash course on the terms and methodolgies in Web3.
📌Follow me @laishawadhwa for more such web3 gyaan!
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