Private Keys

Key concepts about blockchain

Public key encryption
Hashing.One way encryption
A hash function takes some input data and creates some output data
To expand on this concept, a hash function takes on the input of any length and creates an output of fixed length.
It takes an input string and created a string of random letters and numbers “a0680c4n2p04bc744ce1067712b”
This is mentioned because of the message digest.
It is also mentioned because of the digital fingerprint. this is often actually because there is no way this digest can represent the opposite string. If I try & modify this the message digest is getting to be completely different.
One way Street
Another property of hash functions is that they’re away.
It is very easy to calculate a message digest but given the digest, it is near impossible to figure out in the input.
Again, not impossible but it’ll take another billion years approximately.

  • Cryptography——-Public key encryption Demo to .html
Bitcoin is often thought of as an open messaging system secured by public-key cryptography.
In contrast to other systems protected by username and password logins, Bitcoin is secured through digital message signatures created with a singular private key.
This single point of access places a really high value on the secure generation, use, and storage of personal keys.

Transaction Input and Output

Transaction tells the network that the owner of a variety of bitcoin has authorized the transfer of a number of those bitcoins to a different owner.
The new owner can now spend these bitcoins by creating another transaction that authorized a transfer to a different owner, and soon, in a chain of ownership.
Transactions are like lines during a double-entry bookkeeping ledger, in simple terms, each transaction contains one or more”inputs,(like Debits)
On the opposite side of the transaction, there are one or more “outputs”,(like credits)
The inputs and outputs (debits & credits) don’t necessarily add up to an equivalent amount.
Instead, outputs add up to slightly but inputs, and therefore the difference represents an implied “transaction fee, a little payment collected by the miner who includes the transaction within the ledger.
The transaction also contains proof of ownership for every amount of bitcoin(inputs) whose value is transferred, within the sort of a digital signature from the owner, which may be independently validated by anyone.
Transaction chains
Transactions move value from transaction inputs to transaction outputs.
An input is where the coin value is coming from, usually a previous transaction output.
Outputs from one transaction are often used as inputs during a new transaction, thus creating a sequence o ownership because the value is moved from address to deal with.
Making change
Bitcoin transactions can include outputs that reference both an address of the new owner and an address of the present owner called the change address.
As transaction inputs, the currency notes, cannot be divided.
If you buy a $5US bill to buy the things during a store but use a $20US dollar to buy the item, you expect to receive $15US dollars in change.
The same concept applies to bitcoin transaction inputs.

If you bought an item that costs 5 bitcoin but only had a 20 bitcoin input to use, you would send one output of 15 bitcoin back to yourself as a change.

Bitcoin properties

Peer-to-peer ledger of balances
Can never be changed, transactions are permanent.
each bitcoin is equal, maintains it value(not sort of bananas)
Permissionless and borderless
anyone can participate by downloading software.
down to 8 decimal places
21 million coins ever
can send any amount in seconds, compared to gold
Blockchain uses old technologies
Accounting ledger
Computer network Technology/Peer-to-Peer network

Problem: Private key solve

Bitcoin solves both problems through a system called public-key cryptography. This system uses two pieces of data to authenticate messages.
A public key identifies a sender or recipient and can be distributed to others.
A private key creates an unforgeable message signature.
Public and personal keys are mathematically linked through a signature algorithm, a mathematical procedure for creating identities, signing messages, and validating signatures.
Six things about private keys to staying in the mind
A private key’s Just variety
Transactions are Messages Signed with a personal key
Anyone who knows Your Private key Can Steal Your Funds
A private key Generate a Public key which Generates an Address
Security depends on choosing an honest Private Key
Private Keys are (somewhat) portable


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Mansoor Ahmed

Mansoor Ahmed is Chemical Engineer, web developer, a Tech writer currently living in Pakistan. My interests range from technology to web development. I am also interested in programming, writing, and reading.