The role of public keys in the safety of cryptocurrency: Cardano (ADA) observations
Cryptocurrencies have revolutionized the way we think about money and financial measures. In the event of Blockchain technology, cryptocurrencies, such as Bitcoin and Ethereum, have achieved a wide range of approval. Despite their growing popularity, cryptocurrencies are still significant safety challenges.
One of the most critical aspects of cryptocurrency safety is the use of public keys, also called private keys or addresses. These keys are used to validate transactions in the block chain and to control the access of certain assets. This article examines and explores the role of public keys in the safety of cryptocurrencies and how Cardano (ADA) uses public keys to improve its platform safety.
What are the public keys?
On the Blockchain network, each user has been given a clear public key that acts as a digital identity. This public key is used to validate events and to manage certain assets. The private key, also known as a seed phrase or return phrase, is used to create several addresses and new coins.
How do public keys work
If the user sends the cryptocurrency from one address, it must be checked with blockchain nodes (ie computer, events valid). To check the trade, the node must obtain a public key. If the sender’s public key corresponds to the recipient’s public key, it is considered valid and can be continued.
Public key problem
However, several security problems are related to public keys:
- Weaknesses of Hash Functions : Many encryption technology functions to secure the encryption currency trade are susceptible to collisions or preparatory attacks.
- Key exposure : If the private key is impaired, the attacker can steal all coins connected to this address.
- Privatscheldiebe
: Private keys can be stolen through phishing, social technology or other means.
Cardanos -approach
In order to alleviate these risks, Cardano has developed a new approach to safeguarding cryptocurrency transactions with public keys. Using its extensive experience in developing and implementing large blockchain systems, Cardano can create more solid and sustainable safety protocols.
One of the main features of Cardano’s approach is
Use of zero data resistance (ZKPS) . ZKP allows users to demonstrate the qualifications of events without revealing private keys. This enables a safe and efficient event in the block chain without cleaning confidential information.
How Cardano uses public keys
Cardano uses public keys in different ways:
- Entry certificate (pos) Salgorithm : POS Consensus Salgorithms that control most of the network mining performance, create new coins for your private keys and validate events.
- Protected versatile calculation (SMPC)
: SMPC allows multiple parties to complete the calculations without indicating one party’s input or departure. This is useful in checking data processing and events in the block chain.
- Distributed Application Development (DAPP) Development : The Cardano platform gives developers the opportunity to create decentralized applications with a variety of intelligent contracts in the block chain.
Research
Cryptocurrencies are still developing rapidly and safety is still one of the most critical challenges. Using their specialized knowledge in developing large blockchain systems, Cardano can create more solid and sustainable safety protocols. Public keys play an important role in these minutes and provide a safe basis for transaction check and property management in the block chain.