Every cryptocurrency today comes with the option of public and private keys. Many newcomers to the crypto are unaware of the keys in the wallet. And so they often get confused which keys to use and when to use them. So we will see both Public and Private keys in the cryptocurrency and how they are used.
So let's start with our first key - Public Key.
What is a Public Key?
A public key basically a encrypted string of text, numbers that identify an address. This address is where the user can find his coins specific to the blockchain. Also the address holds the information on the ledger for the transactions. When you want to send someone coins, this is the key being used as an address to accept the money.
Wallets show you Public key in address as well as the QR code form these days. Public key is where you find your ledger address during the acceptance of coins online. This key is bind with the private key and this key shows the ownership of the coins for that particular address (as in public key).
Another Example: Your HIVE username is also a public key which allows you to identify on the blockchain. People can send you hive dollar and HIVE by making use of your user name.
What is a Private Key?
Like Public key, you would also find the Private key is encrypted combination of text and numbers that hold the information bind with the public key. By using the private key you can do the wallet transactions, sign memo, send money to another account.
This key is private and you should never share this key with the Public. In case of HIVE you have plenty of Private keys that have specific wallet functions that you can find in wallet settings. You have to protect those keys. Save them somewhere. And make sure to never share the key with anyone.
How to use Public & Private Key?
When you want to accept the coins to your crypto wallet, you make use of the Public key. Think of this address as your money acceptance address. Just like you use your email as an address to accept the money in your Paypal address. You do the same with the cryptocurrency. You have to user the Public key aka Address to accept the coins.
Private keys which are linked to your public key aka Address needs to be kept safe. And you have to only use the key when you want to take the money out or perform any other wallet action like importing the wallet in any other interface or connecting your address with dApps.
Where to Find Public & Private Keys?
Each cryptocurrency has way to offer your the keys. Some way to find this is through your wallet. Some wallets are multi currency wallets. So they store those keys in the settings links or page. And from there for each cryptocurrency you can access the public and private key pair. Wallets keep this information secret using the seed phrases.
Example: You can access your private keys for the HIVE in wallet tab > keys & permissions page. Here you can uncover the hidden keys for each wallet actions.
Public keys can be public and there is no harm if they get leaked. However you have to protect your private keys. Make sure to lock them somewhere. Make sure if you store it in some cloud account, they are properly password protected. Make sure to store them somewhere offline if need be.
Cryptocurrency and Blockchain is going to be part of our future. And knowing the Public and Private key pair is something you should know in order to build your blockchain knowledge awareness.