Ownership of bitcoin is established through _digital keys_ and _digital signatures_. These keys are not actually stored in the network, but are instead created and stored by end-users, in a file called a _wallet_, or in a database. The keys within each user's wallet allow the user to sign transactions, thereby providing cryptographic proof of the ownership of the bitcoins sourced by the transaction. The keys themselves are completely independent of the bitcoin protocol and can be generated and managed by the end users. Keys can be generated without reference to the blockchain or access to the network. Keys enable many of the interesting properties of bitcoin, including de-centralized trust and control, ownership attestation and the cryptographic-proof security model. Keys can also be converted into unique and public addresses (eg. bitcoin addresses, those that start with a "1"), allowing anyone to create transactions that transfer ownership of bitcoin to our keys.
In this chapter we will introduce wallets, which contain cryptographic keys. We will look at how keys are generated, stored and managed. We will review the various encoding formats used to represent private and public keys, addresses and script addresses. Finally we will look at special uses of keys to sign messages, prove ownerhsip and special addresses uses such as vanity addresses and paper wallets.
In this chapter we will introduce wallets, which contain cryptographic keys. We will look at how keys are generated, stored and managed. We will review the various encoding formats used to represent private and public keys, addresses and script addresses. Finally we will look at special uses of keys to sign messages, prove ownership and special addresses uses such as vanity addresses and paper wallets.
[TIP]
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Wallets contain keys, not coins. The coins are stored on the blockchain, in the form of transaction-outputs (often noted as vout or txout). Each user has a wallet containing keys. Wallets are really keychains containing pairs of private/publice keys (See <<public key>>). Users sign transactions with the keys, thereby proving they own the transaction outputs (their coins).
Wallets contain keys, not coins. The coins are stored on the blockchain, in the form of transaction-outputs (often noted as vout or txout). Each user has a wallet containing keys. Wallets are really keychains containing pairs of private/public keys (See <<public key>>). Users sign transactions with the keys, thereby proving they own the transaction outputs (their coins).
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[[wallets]]
@ -20,7 +20,7 @@ Your bitcoin wallet contains a collection of key pairs, each consisting of a pri
==== Private Keys
In the most simple form, the +private key+ is a number. The private key be used to create a corresponding +public key+. The public key can then be converted into a +bitcoin address+, which is shared with anyone who we want to send us bitcoin. Ownerhsip and control over the private key is the root of user control over all funds associated with the corresponding bitcoin address.
In the most simple form, the +private key+ is a number. The private key can be used to create a corresponding +public key+. The public key can then be converted into a +bitcoin address+, which is shared with anyone who we want to send us bitcoin. Ownership and control over the private key is the root of user control over all funds associated with the corresponding bitcoin address.
===== Generating a private key from a random number
Minh T. Nguyen
10 years ago