Private key

As explained in Investing for Programmers

A private key is a secret cryptographic value used to sign cryptocurrency transactions and establish control over associated assets.

A private key is the secret value used to sign blockchain transactions. Control of the key establishes practical control over associated cryptocurrency: if an exchange signs transactions with its own keys, the customer does not directly own those keys. section 5.3.1 section 5.5

Private-key custody creates distinct risks:

• Losing a key can mean losing control of the cryptocurrency, even though the transaction history remains on the public blockchain. section 5.3.1
• Holding assets on an exchange delegates transaction signing to that exchange and exposes the holder to custody, regulation, fraud, and platform risks. section 5.3.1
• Cold storage and hardware wallets provide ways to keep signing keys in a safer place. section 5.5

Figure 5.5 If you hold cryptocurrency on an exchange, the exchange owns the keys signing the transactions on the blockchain. Ledgers, such as cold wallets, provide ways to store the keys that signed the last transaction in a safe place. Be aware that cryptocurrency, a distributed transaction log, is a public blockchain and therefore never stored on your device or account.

Use the figure to compare exchange custody with personally secured signing keys and to distinguish keys from the public blockchain record. section 5.3.1

How Investing for Programmers covers it

How deep it goes

Defines transaction signing and custody, but stops short of detailing cryptographic algorithms or key-generation procedures.

Examples

Uses exchange accounts, cold wallets, hardware wallets, and Figure 5.5 to illustrate who controls transaction-signing keys.

What it assumes

Introduces cryptocurrency ownership from a simplified account-and-key model suitable for beginners.

What you can do after

Evaluate cryptocurrency custody arrangements and choose between exchange custody and secure cold-storage options.

How it connects

Connects private keys to blockchain, cryptocurrency, exchanges, transaction signing, cold storage, hardware wallets, and fraud risk.

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Also explained in

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  Hacking CryptographyA private key is the secret member of an asymmetric key pair used for operations such as decryption or signature generation.
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  Software Security for DevelopersA private key is the confidential member of a cryptographic key pair used for operations such as decryption or digital signing.
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  Real-World CryptographyA private key is the secret value in a public-key cryptographic key pair used for decryption or other private-key operations.
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  Secure APIsA private key is the secret half of an asymmetric cryptographic key pair used to create digital signatures or perform private-key operations.
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  Elliptic Curve Cryptography for DevelopersThe secret key in an asymmetric cryptographic key pair that is controlled by its owner and used for signing or decryption operations.
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  Road to KubernetesAn SSH private key is the secret member of a cryptographic key pair used to authenticate secure shell connections.
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  ASP.NET Core in Action, 3eA private key is a cryptographic key kept secret by its owner and used with a corresponding public key for decryption or signing.
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  Acing the Certified Kubernetes Administrator Exam, Second EditionA private key is the secret cryptographic key used by an identity to prove possession of a public-key credential.
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  Data Pipelines with Apache Airflow, Second EditionA private key is a secret cryptographic key used to decrypt data or create digital signatures.
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  API Design PatternsA private key is the confidential component of an asymmetric cryptographic key pair used to generate digital signatures or perform other private-key operations.
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  Grokking Web Application SecurityA private key is a cryptographic key kept secret and used by its owner for operations such as decryption or digital signing.
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  Rust Servers, Services, and AppsA private key is the secret member of a cryptographic key pair used to authenticate its holder or perform private-key cryptographic operations.

Compare how 13 books explain private key →

Related concepts

• digital signatureproduces · A digital signature is cryptographic data generated with a private key and verified with corresponding public information to authenticate data or its signer and detect alteration.
• public-private key pairpart of · A public-private key pair is a mathematically related public key and private key used together for asymmetric cryptographic operations.
• ECDSAused by · ECDSA is a public-key digital signature algorithm that uses elliptic-curve arithmetic to generate and verify signatures.
• RSAused by · RSA is a public-key cryptosystem based on the computational difficulty of factoring large composite integers and supporting encryption and digital signatures.
• SSHused by · SSH is a cryptographic network protocol providing authenticated and encrypted remote access, command execution, and data transfer over untrusted networks.
• TLS terminationused by · TLS termination is the process of ending a TLS connection and decrypting its traffic at an endpoint or intermediary for processing or forwarding.

This explainer was generated by Manning's knowledge graph from the text of Investing for Programmers. The section links point to the parts of the book it draws on.