The role of public keys in cryptocurrency security: Kardano (ADA) insight
Cryptocurrencies have changed the thinking of money and financial transactions. With the development of blockchain technology, cryptocurrencies, such as bitcoin and Ethereum, received a wide range of acceptance. Despite increasing popularity, cryptocurrencies continue to face significant security problems.
One of the most critical aspects of cryptocurrency is the use of public keys, also known as private keys or titles. These keys are used to confirm transactions in the blockchain and check access to each device. In this article, we examine the public key role in cryptocurrency safety and test how Cardano (ADA) uses public keys to improve platform safety.
What are public keys?
Each user receives a unique public key on the blockchain network that serves as their digital identity. This public key is used to confirm transactions and check access to special networking tools. They use a private key, also known as seed sentence or recovery sentence, to create multiple titles and to create new coins.
How do the public keys work
When the user sends a cryptocurrency from one title to another, it must be checked with nodes in the blockchain (ie computers confirming transactions). To check the transaction, the knot must receive a public key. If the sender’s public key complies with the recipient as the public key, it is considered valid and the transaction may continue.
Problem with public keys
However, public keys arise a number of security problems:
1
HASH Function Weaknesses : Many cryptographic hash function used to ensure cryptocurrency transactions can be vulnerable to clashes or preliminary attacks.
- Main Exposure : If a private key is threatened, the attacker can steal all the coins associated with this title.
3
Private Key Thefts
: You can steal private keys with phishing, social engineering or other tools.
Cardano approach
In order to reduce these risks, Cardano has developed a new approach to securing cryptocurrency transactions through public keys. By attracting their widespread experience in the development and implementation of large blockchain systems, Cardano is able to create more stable and lasting security protocols.
One of the main features of Kardano’s approach is evidence of
zero knowledge (ZKP) Use **. ZKP allows users to justify the validity of the transactions without publishing private keys. This allows you to test secure and effective transactions in the blockchain without subjecting sensitive information.
How to use Cardano public keys
Cardano uses public keys in several ways:
1
Proof of Reduction (POS) monotonous algorithm : POS consensus algorithmic nodes that regulate the majority of network mining energy, use their own private keys to create new coins and strengthen transactions.
- Safe Calculation of Multiple Parties (SMPC) : SMPC allows multiple parties to make calculations together without disclosing each batch inputs or outputs. This is useful for testing data processing and transaction in a blockchain.
3
Development of Decentralized Applications (Dapp) : The Cardano platform allows developers to create decentralized applications with a wide range of smart contracts in the block.
Conclusion
Cryptocurrencies continue to develop rapidly, and security remains one of the most critical problems. Using their knowledge, Cardano can create more stable and durable security protocols in the development of large blockchain systems. These protocols play an important role in public keys, providing a secure basis for transaction testing and device management in the blockchain.