Bitcoin Address – Is It Safe To Share?
August 28, 2018
Bitcoin is the first cryptocurrency that was ever introduced in the market which was considered as the genesis of cryptocurrency. The Bitcoin used state-of-the-art technologies to ensure the privacy and security of the user which became extremely popular. People started to invest in Bitcoin and transacted in Bitcoins which made the cryptocurrency furthermore popular. The Bitcoin introduced many solutions to further keep the coins safe from any threat and one such solution was the Bitcoin wallet.
The Bitcoin wallet became the ultimate Bitcoin storage space which was encrypted by robust encryption. The wallet directly connected to the sender’s system and completed the transaction. The wallet became a necessity more than just a luxury. The wallet uses two encryption keys based on which the wallets are secured from any third-party intrusion. The Bitcoin wallet has a public address based on which the sender tracks the wallet of the receiver. The data of the wallet cannot be seen or accessed by the sender has the wallet address. Here are some technical factors that will further help you understand whether Bitcoin addresses are safe to share.
How does Bitcoin address work?
The Bitcoin address is just like the email id of the user which can be shared to send any data. The address of the wallet is generated by the public key by hashing it twice. To protect the anonymity and privacy of the user, the wallet providers change the wallet address after every transaction. The wallet address is frequently represented in the form of a QR code for faster transactions. After every transaction, a new QR code is issued to the sender.
What is a public key?
There are in fact two keys, public key, and private key. The public key is mathematically derived from the private key, whereas the private key is generated using complex codes and mathematical algorithms. Both the private and public keys are in an alphanumeric format which is widely known as Wallet Import Format (WIF). For example, a public key in WIF format would look like 8ydH3UDB7bhcx789h2erduh3Q89q238e9. Unlike the address, the public key cannot be changed as it is derived from private key. The reason the address change is because of the hashing.
What is a private key?
The private key is generated when you get a wallet with complex codes and bulky algorithms. There can only be one private key for a wallet. The same private key is used to encrypt the outgoing cryptocurrency transactions. Hence the private key is used to send the cryptocurrency to other wallet address. If any individual has your private key, he/she will have the complete control over your wallet and the cryptocurrencies inside them. So keep the private key private to yourself.
Can a private key be derived from the public key or address?
The given fact is true that the public key is derived from a private key and the address is hashed from the public key. The algorithm is really complex and the codes are so private, it is practically impossible to work the cycle backward. There has been much research conducted to check the same fact which proved the same fact. Theories suggest that even the world’s most powerful computer would take an eternity to perform a reverse derivation of such level. Hence the private key was safe and wasn’t able to be derived from the address or the public key.
Here the above-mentioned facts suggest that the Bitcoin address is safe to share with the sender or any Online Bitcoin Exchange platform. Even if the best computer tries to reach to your wallet, it would take millions of years to complete such calculation. The Bitcoin wallets have surely made the Bitcoin transactions safer across the platform.