What happens when a new wallet is created
When you create a new Ethereum wallet, a few important files and information are generated that make your interactions easier with the Ethereum network. In this article, we dive into what each of these components represents and how they contribute to your overall experience.
1. Private key
A private key is a unique secret code used to sign transactions in the Ethereum network. It is necessary to verify the ownership and authenticity of coins obtained from other users or transactions to the blockchain. A new wallet usually generates a new private key when you create it, which can be safely stored in your device.
2. Public key
The public key, also known as the address, is a unique chain of characters used to receive and send the ether (ETH) in the Ethereum network. It is basically a digital identifier that serves as proof of ownership for each account. When you create a new wallet, it usually generates a new public key that can be shared with others or safely saved.
3. Signature of transactions
When sending transactions to another user or node in the Ethereum network, your private key is combined with a unique signature of transactions using the “KECCAK-256” algorithm. This signature verifies that you have allowed a transaction as an account owner and that in accordance with the agreed rules. The public key, together with the transaction signature, consists of hash data on transactions.
4. Address Blockchain
Blockchain address is a unique chain of characters (usually eight or twelve), which represents the balance of your Ethereum’s wallet. It is often displayed as “0x …”, followed by a hexadecimal representation of its length and sequence of eight to eleven digits. This address can be used to receive an ether, sending an ether to other users, or accessing specific features in the Ethereum network.
5. The balance of the account
The account balance is the current total value stored in the private key key of your Ethereum wallet. It reflects the sum of all coins, tokens and other assets that you have as an account owner.
6. Private key (wallet seed)
In some cases, a new wallet can be generated when creating a new wallet. This seed consists of a series of words that are used to create a new Ethereum wallet with a specific pair of keys. The private key is generated by seed and can be safely shared or stored to facilitate future transactions.
Is the public key the same as the address?
While both expressions are often used interchangeably, they indicate slightly different aspects:
* Public Key
: A unique chain of characters representing a digital identifier that serves as proof of ownership for an account. It is usually displayed at the blockchain address (eg “0x …”).
* Blockchain address : a real public key used to receive ether or access functions in the Ethereum network.
In short, when you create a new wallet, it generates:
- Private key
- Public Key (Address)
- Signature of transactions
- The blockchain address
The private key serves as a unique authorization code for transactions, while the public key represents your ownership and identity in the Ethereum network.
