Many people ask about bitcoin forks. Nowadays the forks keep coming. Mainly too many forks came in August(2017). You might know that if you have a bitcoin then you can get one bitcoin cash for free and these days bitcoin value keeps changes between 2,000$ to 3,000$. But many people didn’t get free bitcoin cash.
Maybe the website they were using does not support the free bitcoin cash. But there are many reasons. Maybe they don’t know that they can export the private keys to another wallet. Many people don’t know the key systems of bitcoin and other cryptocurrencies clearly. So, we’ll talk regarding it in this article.
Many of your concepts will be cleared. Basically, we’ll consider bitcoin as the main topic because people use this currency mainly these days. You all might know the public key and private key. They are reversal functions of each other.
We’ll not discuss it again. When you use a wallet, for example, the blockchain, zebpay or some other wallet, exactly what happen in a wallet, what is a wallet. Listen carefully what I’m going to tell in this article. These are important things and in the future, it’ll be helpful for you. Many properties based on it. Look at the picture given below-
When you sign up for a wallet it generates a pair of public key and private key. The Bitcoin address is the address of your wallet where you receive your funds or send to other wallets. Some people think that the bitcoin address and the public key is exactly the same thing. These two are not exactly same but they are inter-related.
In the picture, first created a public key. The private key passed through a mathematical function and created a public key. Basically, this is such type of a mathematical function where the keys are reverse of each other and private key can’t be created from the public key. The bitcoin address is nothing but a hash version of the public key.
In the picture, you might be looking these two are same. The private key and public key are irreversible and anti of each other and the bitcoin address and the public key are also irreversible but the bitcoin address and the public key are not anti of each other. There is no such property between them.
In some wallets, provides a public key below the bitcoin address QR barcode. But, it is exactly not a public key, you should call it Hashed Public Key. This name will be better if we say technically. At the first time, when bitcoin was just started, all funds were received and sent only in public key.
The issue with that was, it was quite lengthy. So, a hash of it was created and after that, we started using the address. You must keep the private key securely. The main function of a wallet is containing the private key safely. Because using the private key you can create the public key and from the public key, you can create bitcoin address. One thing, the balance shows in your wallet is not in your wallet.
Exactly what happens, suppose that your wallet is in the blockchain, all transactions of the wallet, how much you received and how much you sent will be calculated and according to it, the final balance is calculated. The wallet shows the final balance. Basically, the balance is in the blockchain, this is just a sum up. your wallet just showing it.
When you click on the refresh button to update your balance, the whole blockchain surfs everywhere it looks for your wallet address and searches for the recent transactions of your wallet address and calculates it and your wallet shows the final balance. Basically, your wallet doesn’t contain balance it just shows the balance stored in the blockchain. The main job of a wallet is storing the private key safely.
The private key is everything in the world of bitcoin. Suppose that I have an application and I made a backup of the private key of my wallet to the application. Now I imported the private key to another wallet. If my first wallet showed 5 bitcoins then my new bitcoin will also show 5 bitcoins. the private key is everything.
I recommend you to make a backup of your private key and store it somewhere safe and don’t share it with anyone. Because if you forget the password of your wallet, then you can regain your wallet using the private key. But some wallet doesn’t allow making the backup of private keys because they think if anybody makes a backup of the private key, he might lose it someday.
The backup method varies from wallet to wallet You can google corresponding to your wallet that how to make a backup of your private keys. I recommend you to use such type of wallets where importation and exportation of the private key are easy. This will be helpful for you, mainly when forks come. Nowadays the wallets making their security better day by day.
You might notice that some wallet companies making the bitcoin address variable. Variable means, each time when you accept bitcoins, the company provides new bitcoin addresses. In that case, the key combination changes after each and every transaction.
All these things depend upon the wallet you choose. I always try to gain max knowledge about the wallet system you are using. Some websites or wallets may simply give you a fixed address that you can use to receive and transfer funds. While some may change it with each transaction. While some may give an option to create a stable address for you along with having default variables addresses. It all depends on how that company is handling their clients. Many companies simply like you do use their platform for receiving and transferring funds without letting you to bother about your keys etc… Backup methods may also depend upon your wallet provider. It may not allow direct private key backup but indirect in a way so that you can regain it if you lost wallet without knowing actual private key. – Hacks & Security