The role of public keys in the safety of cryptocurrencies: Cardano prospects (ADA)
Cryptocurrencies have revolutionized the way we think of money and financial transactions. With the advent of blockchain technology, cryptocurrencies like Bitcoin and Ethereum have been widely accepted as a means of exchange. However, despite their growing popularity, cryptocurrencies are still faced with significant security challenges.
One of the most critical aspects of cryptocurrency safety is the use of public keys, also called keys or private addresses. These keys are used to validate transactions on the blockchain and control access to specific assets. In this article, we will explore the role of public keys in the safety of cryptocurrencies and examine how Cardano (ADA) takes advantage of public keys to improve the safety of its platform.
What are public keys?
In a blockchain network, each user is awarded a single public key that serves as a digital identity. This public key is used to validate transactions and control access to specific assets on the network. The private key, also known as seed phrase or recovery sentence, is used to create several addresses and marry new coins.
How the public keys work
When a user sends a cryptocurrency from one address to another, it must be checked by the nodes of the blockchain (that is to say computers that validate transactions). To check a transaction, a node must receive a public key. If the sender’s public key corresponds to the recipient’s public key, it is considered valid and the transaction can continue.
The problem with public keys
However, several security problems are associated with public keys:
- weaknesses in the hash functions : Many cryptographic hash functions used to secure cryptocurrency transactions are vulnerable to collisions or preimage attacks.
- Exhibition of keys : If a private key is compromised, the attacker can steal all the parts associated with this address.
- Private watch : Private keys can be stolen by phishing, social engineering or other means.
Cardano approach
To alleviate these risks, Cardano has developed a new approach to secure cryptocurrency transactions using public keys. By taking advantage of their vast experience in the development and implementation of large -scale blockchain systems, Cardano is able to create more robust and resilient safety protocols.
One of the main characteristics of Cardano’s approach is the use of
Zero knowledge evidence (ZKPS) . ZKP allows users to prove the validity of transactions without revealing their private keys. This allows a secure and effective transaction verification on the blockchain, without exposing sensitive information.
How Cardano uses public keys
Cardano uses public keys in several ways:
- Consensus algorithm for proof of bet (POS)
: In the consensus possensus algorithms, the nodes which control the majority of the mining supply of the network use their private keys to create new parts and validate transactions .
- Secure multi -party computation (SMPC) : SMPC allows several parts to make calculations jointly without revealing the entry or exit of an individual part. This is useful for secure data processing and verification of transactions on the blockchain.
- Decentralized application development (DAPP) : The Cardano platform allows developers to create decentralized applications using a wide range of intelligent contracts, which are executed on the blockchain.
Conclusion
Cryptocurrencies continue to evolve quickly and security remains one of the most critical challenges. By taking advantage of their expertise in the development of large -scale blockchain systems, Cardano is able to create more robust and resilient safety protocols. Public keys play an essential role in these protocols, providing a secure base for verification of transactions and the management of assets on blockchain.