If you open your account and leave it to the bank, the only way to access it would be to prove it was yourself. These include password entry methods, public authentication, and biometric authentication. This method is a central management system in which banks take the initiative in management. Meanwhile, Blockchain requires users to use a wallet that they want to store cryptocurrency in a decentralized way.
Of course, there is also a way to keep cryptocurrency on the exchange. In the case of an exchange, the exchange is a central way of managing the wallet. Because of this, there are dangers such as hacking and phishing.
On the other hand, there is a service provider for personal cryptocurrency wallets, but the operator only provides the wallet and does not require any information other than the information needed to use it. In other words, the key that has access to the wallet should be managed by an individual.
The private key and its role to store cryptocurrency
As blockchain evolves and cryptocurrency usage becomes more specific, private keys are becoming more important. When the app comes out, you have to use a wallet that works with him and manage your private keys naturally. However, the private key is still a concept unfamiliar to most people.
Private keys are common for transfer money from one’s own encrypted wallet to another’s. Shortly, it is the key to opening the door of the safe.
For the transfer of cryptocurrency money, the data is encrypted using a private key, which is called an electronic signature. By sending this electronic signature along with the original data, the receiver can decrypt the data and know if it is falsified or not using the public key.
In a typical encrypted wallet, an electronic signature is not possible if no private key is present. So it is not possible to transfer money. In this case, users need special care to manage private keys as the cryptocurrency can be idle in the wallet forever.
Cryptocurrency wallets such as Samsung Galaxy S10‘s, Opera’s and other saves such as Upbit‘s upcoming save must have private keys for users.