What Are Bitcoin Keys?
Bitcoin keys are randomly generated strings of numbers and letters that are used to send bitcoin and/or verify ownership of a bitcoin addressWhat Is A Bitcoin Address? A Bitcoin Address, or just Address, is a 26-35 character ID for receiving bitcoin. Most bitcoin addresses begin with 1, 3, or bc1 but there... with a digital signature.
There are two main types of bitcoin keys: private keys and public keys. Private keys are used to generate public keys which are used to generate each and every address in your bitcoin walletWhat Is A Bitcoin Wallet? A Bitcoin wallet is an app or software that enables you to send, receive, and store bitcoin. Although the term "wallet" is commonly used, bitcoin....
Bitcoin keys are based on asymmetric encryption, which means that the private key is used to sign transactions, while the public key is used to verify the signatures. This system ensures the security and integrity of bitcoin transactions by allowing users to prove ownership without revealing their private keys.
What Is A Private Key?
A bitcoin private key is a long strings of characters (256-bit) that are randomly generated and are kept secret by the owner. Private keys are used to sign transactions to send bitcoin as well as prove ownership of a bitcoin address. It is essential to keep private keys safe and secure because anyone who possesses the private key has full control over the bitcoin at the associated address(es). Each private key generates a one-of-a-kind digital signature that enables bitcoin transactions to be sent by a wallet.
As the name implies, private keys are private and not intended to be shared with anybody. For ease of use and to reduce human error, bitcoin wallets encode private keys as 12-24 common English words commonly known as a seed phrase.
You can experiment with this private key explorer to learn more about bitcoin private keys and how they work.
Note: This is only for experimentation and learning. Do not ever input any real bitcoin wallet information into this tool.
What Is A Public Key?
Public keys are derived from private keys using a one-way mathematical function. They are used to generate bitcoin addresses, which are public identifiers that can be used to receive bitcoins. Public keys can be freely shared with others without compromising the privacy or security of the bitcoins.
A bitcoin public key, also known as an xPub key, is another large number which is generated from the private key. This key is what allows a bitcoin wallet to generate addresses so that bitcoin can be received.
Although it’s called a “public key”, it’s still best practice to keep it private because it is used to generate all of the addresses for a bitcoin wallet. Anyone who has access to your public key, knows which addresses are yours and the amount of bitcoin that is at each address. Your funds are not at risk of being stolen in the event that your public key is known to someone else but for best privacy practices, you want to keep your public key as private as possible.
Bitcoin Addresses
In an effort to increase privacy for bitcoin users, bitcoin payments are sent to addresses instead of public keys. Users don’t need to share their public keys directly. Instead, wallets manage public keys and generate a new address after each payment so that user privacy is preserved by not using the same address for every payment.
Who Controls Your Bitcoin Keys
Not your keys, not your coins is a common expression in the bitcoin community and for good reason. If you have your bitcoin on an exchange or are under third-party custody of some sort of bitcoin bank, you do not actually own your bitcoin.
The only person who is in control of bitcoin at an address is the owner of the private keys so it is of the utmost importance to store your seed phrase somewhere safe. For maximum security, a hardware wallet is best.