The private key paradox: Understand Ethereum and Bitcoin

As an investor or user of Bitcoin, it is essential to understand the concept of private keys and how they work both in Bitcoin and Ethereum. In this article, we will deepen why the use of a private key when part of the bitcoins that controls is not directly related to the amount of bitcoins sent.

Bitcoin: a decentralized cryptocurrency

Bitcoin is a decentralized cryptocurrency that uses a public key infrastructure (PKI) to ensure transactions and control the network. When Bitcoin sends, he is essentially sending it from his wallet to the public address of another person, which represents his digital identity. The private key stored in your wallet corresponds to this address.

Ethereum: a decentralized blockchain platform

Ethereum, on the other hand, is a blockchain platform that allows developers to create decentralized applications (DAPPS) and intelligent contracts. When Ethereum uses, he is interacting with his decentralized network, which is based on cryptographic techniques to ensure transactions and control asset flow.

Private keys and bitcoin

In Bitcoin, private keys are used to authorize transactions between individuals. Each Bitcoin address is unique, and each transaction implies a specific address and a bitcoin amount that is sent or receives. When Bitcoin sends, its private key is used to create a digital signature that authentic the sender and ensures that the transaction is legitimate.

The relationship between private keys in Bitcoin and Ethereum

Now, we discuss why the use of a private key when part of the bitcoins that controls is not directly related to the amount sent. In other words, if you send 5 bitcoins from your wallet to another person, your public key address does not determine how many bitcoins they possess or control.

Think about it in this way: when you send Bitcoin, you are not creating a new Ethereum transaction; You are simply exchanging a bitcoin for another. The private password you use is still linked to the original bitcoin, which was sent to your wallet in the first place.

Why are private keys used both in Bitcoin and Ethereum

Private keys are used to ensure transactions between individuals in Bitcoin and Ethereum networks. Allow:

  • Authentication: Verify that a transaction is legitimate and of the planned sender.

  • Authorization: Control access to specific assets or services, such as intelligent contracts.

  • Safety: Protect unauthorized transactions or loss of assets.

Conclusion

To summarize, when you send bitcoins or other assets in the Bitcoin network, your private key remains linked to the original wallet in your wallet. The amount of bitcoins sent is irrelevant; The use of a private key ensures that only you, as owner, can control and authorize the transaction.

In contrast, Ethereum’s private keys are used to ensure interactions with their decentralized network and create digital identities for users. While there are similarities between the two platforms, its underlying mechanics differs significantly, which makes it essential to understand the unique concepts and cases of use of each ecosystem.

By understanding this fundamental difference, it will be better equipped to navigate both in Bitcoin and Ethereum networks and making informed decisions about their investments or transactions.

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