Concept

Secret key (or private key) is a strictly personal code that is only known to the recipient (the user to which it is issued and sent). A secret key is, in a way, comparable to a pin or verification code. On the blockchain, transactions are carried out using a secret key in conjunction with the public key. Public and secret keys are fundamental for managing transaction related to cryptoassets, allowing users to enter into transactions without involving a third-party verification.

A secret key is a variable in cryptography used with an algorithm to encrypt or decrypt data for particular assets or transactions. The key grants access to the value of the transaction defined by the payer and which will be assigned and held on the funds or assets (cryptocurrencies) maintained a platform. The key pair (private and public keys) is mathematically connected so that whatever is encrypted using a public or private key can only be decrypted by its corresponding counterpart.

Role and function

A secret key is something like a digital signature or a mathematical key that actors use to create digital signatures. With the key, users can manage the crypto funds at a certain address. As part of the overall cryptographic algorithm, a secret key is uniquely associated with its owner and is not made public. It is used to compute a digital signature for verification using the corresponding public key. Depending on the algorithm, the secret key may be used to figure out and provide the corresponding public key, to compute a digital signature that may be verified by the corresponding public key, to decrypt keys that were encrypted by the corresponding public key, and/ or to compute a shared private record for the agreement transaction involving the key. It may also be used to establish a key for key derivation which will be used as input in producing the intended key.