What is an encrypted digital wallet?
With the wide application of blockchain technology, the blockchain wallet page is becoming more and more popular, and digital currency is understood and accepted by more and more people. As a typical strange asset, digital currency is also favored by many investors. At the same time, the demand for storage, payment and exchange of digital currency is also growing, and the digital currency wallet is born.
What is an encrypted digital wallet? Cryptocurrency is a kind of digital currency based on blockchain technology. Cryptocurrency wallet is an application specially used to manage these assets. Encrypted digital currency wallet provides basic financial functions such as wallet address creation, encrypted digital currency transfer, and transaction history query of each wallet address.
What does encrypted digital wallet mean? The wallet application creates one or more wallet addresses according to the principle of cryptography, and each wallet address corresponds to a key pair: private key and public key. The public key is generated by a certain mathematical operation according to the private key, which corresponds to the private key one by one. The public key is mainly used for external transactions. Each transaction must use the private key to sign the transaction record to prove that it has control over the assets in the relevant wallet address. The private key is the only certificate that can prove control over digital assets.
Therefore, for the digital asset wallet, the private key is the most important. The generation and storage of private keys determine the security of assets. Therefore, the security of digital assets in the general sense is actually the security of the private key. Whether a wallet is secure mainly depends on whether it can safely manage and use the private key. Cryptocurrency is based on cryptography, and public key encryption technology is one of the core technologies of cryptography. Public key encryption technology involves the concepts of public key and private key. If I sign a piece of data with the private key, all the people who hold the public key can verify that the data is indeed signed or authorized by me.
These are cryptographic techniques that existed long before the emergence of cryptocurrency. Back to our wallet, the private key of the wallet actually corresponds to the private key of cryptography, and the wallet address corresponds to the public key of cryptography. So every time I transfer money to you with my wallet address, the underlying principle is that I sign a transfer transaction with my wallet private key. After the transaction is broadcast to the whole network, the balance in my address will decrease and your account will increase.