Public Keys are a set of alphanumeric characters that help people send and receive crypto on a blockchain. They essentially act as the address to your crypto wallet.
It is essential to note that public keys are not the same as blockchain addresses. Addresses are like the accounts on the blockchain that hold your crypto while public keys are the number of those accounts.
Please note that a public key is anonymous and does not reveal any data about its holder unless the holder wants to.
Definition
Public Keys are those alphanumeric strings of letters that are used to identify a blockchain address. These keys are derived from private keys and seed phrases after passing them through a hash function. When these public keys are further passed into the same hash function, they derive the blockchain address.
Private keys are used to gain access to funds stored on a blockchain, which just like public keys, are also alphanumeric letters and numbers.
Importance of Public Keys on a Blockchain
Public Keys serve multiple purposes on a blockchain, crypto markets and in general crypto intelligence.
- They help users send and receive crypto.
- They help create the wallet address for different blockchains supported by a wallet.
- Public keys can be used to track whale transactions and monitor any suspicious activity on the blockchain network.
- They can be used to trace stolen funds.
Public Keys vs Private Keys
Public Keys are the identifiers of blockchain addresses (used to send and receive crypto), whereas private keys are like passwords that help you gain access to these addresses. When a user gains access, they can then transfer the funds in that address.
Public keys and private keys act in complement to help users transact on a blockchain.
Interestingly, public keys are derived from private keys. This is where the threat from quantum computing arises. A quantum computer could be used to decrypt private keys from public addresses merely through trial and error.
Public Keys vs Blockchain Address
Although it is easy to confuse a public key and a blockchain address, they are completely different.
Public keys are used to identify addresses on a blockchain and serve as precursors to those addresses. These keys, when hashed with a function, produce the wallet’s blockchain address.
A public key is a collection of letters and numbers that can be as long as 256 characters in some blockchains. Whereas a blockchain address is a lot shorter, say within 100 characters.
