Understanding Ethereum Accounts
An Ethereum account is your gateway to interacting with the Ethereum Blockchain. When you send Ether (ETH), you're initiating a transaction between two addresses. These addresses don’t "hold" Ether directly—they represent balances recorded on the Blockchain.
Key Components:
- Private Key: A 64-character hexadecimal string (256 bits) used to authorize transactions.
- Public Key: Derived from the private key using ECDSA (Elliptic Curve Digital Signature Algorithm).
- Address: The last 20 bytes of a SHA3-hashed public key.
👉 Learn how to secure your Ethereum assets
How Keys and Addresses Work
Private Keys: The Foundation of Security
- Generated as 64 random hex characters (0–F).
- Never create your own—use cryptographically secure methods to ensure randomness.
- Example:
0xFF00FF00...FF00(but always rely on trusted tools).
Public Keys: Derived from Private Keys
- Created via ECDSA.
- Shared publicly to verify transactions.
Ethereum Addresses: Simplified Identity
- Hash the public key with SHA3 (result: 64-character string).
- Take the last 40 characters (20 bytes)—this is your Ethereum address.
Why Private Keys Matter
Signing Transactions
- Your private key generates a unique signature for each transaction.
- The public key verifies the signature without revealing the private key.
Security Practices:
- Never share your private key.
- Use password-encrypted keystores (e.g., wallets) for added protection.
👉 Explore advanced Ethereum security tips
FAQs
1. Can I change my Ethereum address?
No. Addresses are permanently tied to your private key. Generate a new key pair for a new address.
2. What happens if I lose my private key?
You lose access to your funds permanently. Backup securely using hardware wallets or encrypted storage.
3. Are public keys visible on the Blockchain?
No. Only addresses (hashed versions of public keys) are publicly visible.
4. How do miners verify transactions?
They check the transaction signature against the sender’s public key and address.
Key Takeaways
- Private keys = ownership proof. Public keys = verification tools.
- Addresses are shortened hashes of public keys.
- Always prioritize security: Use trusted tools and never expose private keys.
For deeper insights, consider structured courses on Blockchain fundamentals.