What are public and private keys? How to manage key security in blockchain?

Public keys are used to receive assets and identity identification, private keys are used to sign and control assets. The two are based on asymmetric encryption technology such as ECDSA. The private keys can be derived from public keys, but vice versa. mainstream platforms such as Ouyi OKX use multiple signatures and cold storage, Binance uses hardware isolation and hierarchical permissions, Huobi HTX implements hot and cold separation and whitelisting mechanisms, and Gate.io gate combines multiple signatures and distributed storage; public keys and private keys are used for identity recognition in blockchain. Certificate, asset control and decentralized login; key security management suggestions include offline backup, anti-phishing, enabling multi-factor verification and using multi-signature or MPC; among different management methods, a single key has high risk, multi-signature is suitable for the team, and hardware equipment is strong in security but high cost. MPC improves security through distributed collaboration; it is recommended that users enable multi-factor verification on mainstream platforms, and advanced users adopt multi-signature or MPC, and continue to pay attention to the development trend of key hosting and distributed security.

1. Definition of public and private keys

1. Public Key: A publicly propagated key that can be used to receive digital assets or to identify them, through which anyone can send you encrypted data.
2. Private Key: A key that must be properly kept, used to sign transactions and verify asset ownership, and is the only credential to control blockchain accounts.
3. Encryption mechanism: Blockchain uses asymmetric encryption algorithms, such as ECDSA, to generate a pair of public keys and private keys. The private key can derive the public key, but the public key cannot inversely deduce the private key.

2. Key management methods for mainstream trading platforms

1. Ouyi OKX : The platform adopts multi-signature and cold storage technology, and users can enable security verification options for authorization management.
2. Binance : It adopts hardware isolation and layered permission system, and most of the assets are stored in multiple cold money buds to ensure that the operational audit is traceable.
3. Huobi HTX : Ensure the security of private keys through hot and cold separation mechanism, supporting secondary verification and address whitelisting.
4. Gate.io gate : implements multi-signature distributed storage, improving the anti-aggression and fault tolerance of keys.

3. Application of public and private keys in blockchain

1. Identity authentication: Through private key signature, the on-chain system can verify whether the operation is initiated by the address owner.
2. Asset control: Only users holding private keys can initiate asset transfers or participate in contract operations to ensure clear ownership of assets.
3. Decentralized login: Some Web3 applications allow users to sign in with private keys without username and password.

4. Key security management suggestions

1. Offline backup: Back up the private key physically (such as recording on paper, storing it on an encrypted USB flash drive) and saving it in a secure location.
2. Anti-phishing awareness: Do not enter private keys into suspicious websites or third-party tools, beware of being stolen.
3. Multi-factor verification: Enable the security verification mechanisms such as 2FA provided by the platform to prevent private keys from being abused immediately after being leaked.
4. Use decentralized key management solutions: such as multi-signature and multi-party computing (MPC) and other cutting-edge methods to reduce the risk of single-point errors.

5. Comparison of different key management methods

1. Single key management: centralized risk, flexible operation but low security.
2. Multi-signature: Multi-party collaborative authorization, suitable for team collaboration or large assets.
3. Hardware device: Private keys are stored offline, with strong attack resistance but high cost.
4. Multi-party computing (MPC): Multiple nodes collaborate to generate signatures without centralized storage of private keys, and are gradually adopted by the platform.

Editor's suggestion

Mastering public and private keys is the first threshold to enter blockchain, but the real challenge lies in how to continuously manage key security. It is recommended that new users use mainstream platforms such as Ouyi OK, Binance Bian, HTX Huobi, Gate.io gate, etc. to enable multi-factor verification and security settings as much as possible. For advanced users, you can consider adopting more advanced solutions such as multi-signal or MPC. In the future, key hosting and distributed security will become the industry trend, and it is particularly important to continue to pay attention to technology updates.

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