With an asymmetric cyrptosystem you are the only person who needs access to your private key. With its help, all participants can communicate securely with each other within a decentralized and anonymous network. This principle is also used by the Bitcoin Blockchain and many other crypto currencies. With the help of the private key, the user is protected in dealing with crypto currency.

The key is necessary above all to protect against access by unauthorized persons. A private key turns the public key, which is linked to the user’s address in his customer account, into a private key, which is created using a complicated mathematical alogrithm and it is almost impossible to reverse this process. This means that there is almost no way to use the private key to draw conclusions about the public address and information of the account holder. Anonymity in the field of crypto-currency is one of the fundamental aspects and clear advantages over the classic fiat money. The series of alphanumeric characters comprises 51 digits and is displayed in wallet import format. Only the person who has the unique key has access to the account.

The wallet software creates a digital signature and processes this transaction with the private key. Only in conjunction with the private key can this signature be triggered and generated in a valid manner. This ensures that the transaction cannot be changed after it has been transmitted and that it originates from a specific user.

Only with the private key can the user prove to the digital wallet that the crypto money in it actually belongs to him. If one is in possession of several crypto currencies, a so-called seed is generated. In contrast to the private key, this consists of a string of 12 or 24 words and not of numbers. The seed is generated only once, because it can independently create and process all private keys for a wallet.