Private keys are everything in this crypto world. This is the thing which you can consider the key of trasures or you can say a digital treasures. Without this, you cannot access your digital assets. Basically, keys are things that make you the owner of your crypto assets. That's the reason private key is the backbone of the crypto industry.
What Is a Private Key, Really?
These are some long and random characters that act as proof of the ownership of your digital assets. This is how we define private keys. There is a public key too, and that public key is combined with your private key and that is for the public to receive crypto. The public key is like your UPI address or, you can say, email address, and the private key is like your UPI pin or, we can say, email password.
Your Key, Your Coins
In yesterday's post, I shared one line, which was "not your keys, not your crypto." This is a very famous line in the crypto world, and it is 100% true. If you are using the exchange to hold your crypto, then you are not the owner of your crypto because that is not your wallet, and the exchange has the keys. Here, you are trusting on exchange, and you are giving authority to protect your fund. If the exchange gets scammed or some hackers attack that exchange, then you lose the funds for sure..
If you truly want to own your crypto currency then you should have the private keys of the wallet.
How Private Keys Enable Transactions
The only way to authorize a transaction is through your private key. Whenever you send cryptocurrency, the private key that you own signs the transaction, which proves that you are the real owner of the fund. So this is direct procedure which happens just by your private and public keys and here there is no government, no bank or any third party is involved but you are the boss and you have full controll and responsibility too.
The Double-Edged Sword of Control
As I said, it is good for you that you own your private keys and your digital material, and there is no third party in this procedure, but at the same time it is a big responsibility on you too. There is no forget password button once you lose your private keys, and once you do a wrong transaction, that crypto is lost forever. There is no customer care for you. Backup and protection are both important for your private keys so keep that in your mind.
Conclusion
Here, it is true that the private key is the heart of the cryptocurrency world. It is the thing that gives you financial freedom, enables true ownership, and also allows p2p transaction. Both old and newbies need to understand the private keys. so do not forget to share this article on social media and also share comment below too. I am winding up this post now.
"Your time is limited, so don't waste it living someone else's life. Don't be trapped by dogma — which is living with the results of other people's thinking." -Steve Jobs