How do Keys and Addresses work?

May 10, 2021 1 min read
How do Keys and Addresses work?

An address is a unique location on a blockchain network, which can receive, hold and send tokens. Every address consists of two parts: a public key and a private key.

The idea is that it is safe to share one’s public key widely to receive funds, much like an email address; while the private key is especially sensitive and needs to be kept private, and has the power to send funds by signing transactions, similar to a password.

Every public key and private key pair is linked by a special cryptographic algorithm, which allows them to function in the manner described above. When written in text, the keys look like a long string of unintelligible letters and numbers which can be very hard to remember. This is where wallets are useful.

Private keys are also linked to a list of words called a seed phrase, from which the keys can be generated in order to be more easily legible for humans.

Great! Next, complete checkout for full access to Stake DAO Academy.
Welcome back! You've successfully signed in.
You've successfully subscribed to Stake DAO Academy.
Success! Your account is fully activated, you now have access to all content.
Success! Your billing info has been updated.
Your billing was not updated.