Cryptocurrency private keys are always considered as one of the safest ways to protect your funds stored in cryptocurrencies. In the beginning, it was considered safer than holding gold in your locker. Over time as the Crypto use case gained popularity drawbacks started to surface which makes crypto private keys volatile.
In this post, we are going to explore the reasons which make private keys volatile and solutions blockchain projects have implemented. Let's begin by understanding a few things about Keys so that everyone can understand this post.
Different Types of keys & what they mean ???
There are mainly two types of keys in blockchain: a Public and Private key. So let’s understand both of them.
A Public key is a type of address which is used to receive funds from another. It can be anyone from a person like us or big companies and they need your public key to send you funds.
A Private key is the main key to protect your account. It manages your account permissions whether you need to access your account related activity, to transfer funds and changing the private key itself. Your net banking password is centralized and it can be recovered if lost but Private keys are not recoverable if lost so it is more sensitive.
There are challenges when you want to change your private key to protect your account. So let’s find out about that.
Problems with Changing private keys
The Blockchain field is still growing and that brings issues and requires projects that offer viable solutions. There are still many changes that have to be implemented to attract big investors to crypto fields. The system of using keys in cryptography for protecting accounts has existed since the beginning of blockchain. But it has become inefficient and not always secure. When a compromised Private Spending Keys needs to be changed, an entirely new account with Public Address and Private Spending Key need to be opened - and assets within that account have to be moved from the old Public Address to a new address representing a new account creating inefficiency and onerous operational overhead. As both keys are attached, when you change your private key, the public key changes automatically. You have to provide the updated public key to your sender and sometimes it leads to multiple identification processes.
Public Address are publicly known and used for identification of an account, where Private Spending Keys are for security purposes and used for authentication and encryption of the Public Address.
Separating both the public and private key is really important to attract big investors who will use their public key regularly. Protecting their account may require changing the Private key from time to time.
So, let’s understand what Rekeying is ??
What is Rekeying??
Rekeying is the new feature introduced by Algorand Foundation in Algorand Blockchain.
Rekeying solves for the existing Public Address and Private Spending key friction by allowing users to change their Private Spending key without the need to change their Public Address. Rekeying enables more fl xibility, Public Address continuity of use and permanent identifier with less overhead when changes to the Private Spending key occurs.
Rekeying opens door for so many possibilities within Algorand ecosystem which will eventually help everyone in this space when they choose Algorand Blockchain
Benefit of Algorand Rekeying
There are so many benefits when it comes to talk about this feature but we will talk about benefits which will impact most,
Flexibility:- this feature gives you flexibility to change your private key whenever you want without fear of changing your public key
Continuity:- when you will use Rekeying you can feel free about your Public key distribution as it’s not going to change so that address will continue to receive payments in your wallet.
Security:- whenever you choose Rekeying you can feel free about security concerns as no one will be able to identify you have changed your private key as your public key is not going to change. So feel free about security concerns when you are Rekeying.
At the end I would like to say that this feature is really revolutionary as until now no other blockchain is able to do that. When you change your private key it automatically changes your public key but when you use Algorand Rekeying you can feel free about this as it does not going to change your public key when you change your private key. I have taken the source of the official announcement of Rekeying from Algorand so if you want more information you can visit the post.