Private key, seed and public key in Bitcoin wallets
This text also provides an understanding of the security of other cryptocurrencies, not just Bitcoin.
🔴 Important information
A private key acts as a secret number that gives you control over your own Bitcoins and allows you to spend Bitcoins, unlike the public key that allows you to receive Bitcoin. It provides access to your Bitcoin funds, so keeping it secure is critical. Each Bitcoin wallet contains one or more private keys, which are mathematically linked to all the Bitcoin addresses generated for that wallet. In other words, if you have the private key, you are in control of your Bitcoin holdings.
In addition, there is another important concept: the seeding. During wallet setup, a seed – a sequence of 12 to 24 words – is generated. 12 words are most common. This seed acts as a master password for the wallet and serves as the private key. It is crucial to write down and safely store your seed phrase as it will allow you to restore your Bitcoin wallet if necessary.
Private Key: A private key is a secret number that allows bitcoins to be spent. Every Bitcoin wallet contains one or more private keys, which are saved in the wallet file. The private keys are mathematically related to all Bitcoin addresses generated for the wallet. For example, a private key in hexadecimal might look something like this:
E9873D79C6D87DC0FB6A5778633389F4453213303DA61F20BD67FC233AA33262.
Please remember that these keys are highly sensitive. If your private key is compromised, someone could gain access to your cryptocurrencies. Therefore, it’s crucial to store these keys securely.
Public Key: A public key is derived from the private key, and it’s associated with a Bitcoin address. It’s a unique identifier of the wallet that is used to receive funds. The public key is also used to verify that the transaction was indeed signed with the corresponding private key. For example, a public key might look something like this: 1BvBMSEYstWetqTFn5Au4m4GFg7xJaNVN2.
Bitcoin addresses, which are public keys, often start with the numbers 1 or 3. This is a result of how these addresses are encoded. Here are a couple of examples:
Legacy Addresses
- A Bitcoin address that starts with 1 is a P2PKH (Pay-to-Public-Key-Hash) address. An example of such an address might be1BvBMSEYstWetqTFn5Au4m4GFg7xJaNVN2.
SegWit Addresses
- A Bitcoin address that starts with 3 is a P2SH (Pay-to-Script-Hash) address. An example of such an address might be 3J98t1WpEZ73CNmQviecrnyiWrnqRhWNLy.
These addresses are generated from private keys through a process called hashing. It’s important to note that private keys do not start with 1 or 3. They are a long string of numbers and letters (both uppercase and lowercase) that can start with any value.
For example, in Ethereum, public keys do not start with a specific number, but rather are a 42-character hexadecimal string starting with “0x”.
Seed: A seed is a random phrase that is used to generate your private keys. If your wallet gets destroyed or stolen, you can enter your seed into a new wallet and regain access to your bitcoin. It’s usually a series of 12 or 24 words, like this: witch - collapse - practice - feed - shame - open - despair - creek - road - again - ice - least.
Remember, it’s crucial to keep your private key and seed secure and private, as anyone with access to these can control your Bitcoin. The public key, on the other hand, is meant to be shared so that people can send you Bitcoin.
The length of both private and public keys can vary depending on the encryption algorithm used. In Bitcoin and many other cryptocurrencies, both private keys and public keys are long strings of characters to ensure security. However, it’s important to note that the private key should be kept secret, while the public key can be freely shared.
For example, in the case of Bitcoin, a private key is a 256-bit number, which can be represented in several ways, such as a 64-character hexadecimal number, a 51-character Base58Check number, or a 12-24 word seed phrase. The corresponding public key is a point on the Bitcoin elliptic curve, represented as a 130-character hexadecimal number (including the 04 prefix).
Remember, regardless of their length, the security of your cryptocurrency assets depends on how well you protect your private key. Never share it with anyone, and consider using a hardware wallet or other secure method for storing it.
Bitcoin Addresses: Legacy vs. SegWit
