Private Keys

 Private Keys

Private Keys

 Key concepts about block chain

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 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 the message digest.
It is also mentioned because the digital finger print. this is often actually because there is no way this digest can represent the opposite string.If I try & modify this the message digest are getting to be completing different.
One way Street
Another property of hash functions is that they’re a way .
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 year approximately .

  • Cryptography——-Public key encryption Demo to .html
Bitcoin are often thought of as an open messaging system secured by public key cryptography.
It 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 tell the network that the owner of 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 transfer to a different owner,and soon,in a chain of ownership.
Transactions are like line during a double-entry bookkeeping book keeping 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 “output”,(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 and implied “transaction fee, alittle payment collected by the minor who includes the transaction within the ledger.
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 with bitcoin transaction inputs.

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

Bit coin properties

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

Problem: Private key solve

Bitcoin solve 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 unforge able message signature.
Public and personal keys are mathematically linked through a signature algorithm,a mathematical procedure for creating identities,signing messages, and validating signature.
Six things about private keys to stay in 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’s Generate a Public key which Generates an Address
Security depends on choosing an honest Private Key
Private Keys are (somewhat) portable

Leave a Comment