While blockchain technology originally emerged as a solution to provide distributed trust within the Bitcoin network, the technology has progressed a long way since 2008. While this new architecture has many advantages, the implementation of a blockchain-based system is complex and requires a thorough review to ensure appropriate security.
Regardless of which blockchain you use, there’s no way to avoid key management concerns. The distributed ledger ecosystem requires each user to store and manage their own cryptographic keys. All on-chain interactions are tied to identities using signatures with private keys. In fact, a Bitcoin is nothing more than an IOU, passed from one digital key to another. Everything in a blockchain depends on the keys that are used to sign it, so it is extremely important to keep them secured.
This may seem complicated, but don’t worry. In the following lessons, we’ll expand on how wallet systems can be used to store your keys, and how you can stay safe while using these emerging technologies.
More information is available about Public Key Cryptography in the Blockchain 101 Course.