Private Key

Written by Max Hinchman

Introduction

Private-public key cryptography is used by Bitcoin and other blockchain products for sending and receiving goods. In the case of bitcoin, the private-public key cryptography is used to send and access bitcoin. However, private and public keys perform different tasks. A common example to explain the private-public key relationship is a mailbox. Anyone can deliver mail to the mailbox using just by having the address (public key), but the mailbox can only be accessed by the owner with a key (private key).

In reality, a private key is just a large number that digitally signs transactions or message. The public key is generated based off the private key using Elliptic Curve Digital Signature Algorithm (ECDSA). When a bitcoin is sent to another person, the private key signs a message sent to the blockchain that says that you are the owner of a certain amount of bitcoin belonging to a public address and you authorize the payment to another address.

Suggested Reading

Bitcoin Private Keys: Everything You Need To Know by Sudhir Khatwani

A Beginner’s Guide: Private and Public Key Cryptography Deciphered by Chris Coverdale

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