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Monday, October 3, 2022

What is Bitcoin Identity?

Hello everyone! Welcome everyone to “Prime Number”. Today I want to talk about Bitcoin Digital identity. What is the digital identity of Bitcoin? You can imagine it as a bank account If you need to deposit or transfer money in the bank, then you need to go to the bank Open an account.

The bank can approve your account opening application You can also refuse. But Bitcoin is decentralized Therefore, there is no central authority to authorize account opening applications, and no permission is required.

Anyone can create an account on Bitcoin. So how is this done? In fact, Bitcoin uses a little trick. In theory, there is no concept of account. Only the concept of public-key Because the public key in Bitcoin is used to receive Bitcoin, the person who holds the corresponding private key Can spend the money transferred to him In the previous program, I talked about digital signature As long as you have the private key, it can be used Sign a message.

Anyone gets your signature, message and Your public key can verify whether this message has your signature. In other words, only you can show Sign, only you can show the ownership of this public key It looks like the public key represents a user (account), and you represent the owner of this account This is the digital identity of Bitcoin.

It does not require permission from any organization To create. It is actually a randomly generated number. You don’t need to go to the Bitcoin network to create it or delete it You can send bitcoins directly to this number (account).

Those who have the corresponding private key can spend, Of course, no one can spend it. For example, you send Bitcoin to a No one has the public key address of the private key.

We call it burn Bitcoin Because a digital identity is just a key pair (a public key), you might Think of it as anonymous. That’s right or wrong. You can produce Any multiple identities, for example, you can have 10 identities, you manage them You can do anything with these 10 identities.

But If you use an identity many times, then you can pass Your actions, even without knowing who you are You can also check who your transaction history looks like It is as if you have given a pen name, we can still associate you with your pen name. So don’t think that Bitcoin is anonymous.

All transactions on the Bitcoin network It’s all public. If you use the same address to send and receive bitcoins Many times, others can use data analysis to Keep track of who is transferring money to you and who you are transferring money to.

Put these Draw a big picture of the transaction together and it will give you a portrait. To reiterate, don’t think that the identity in Bitcoin is anonymous. If you really want to maintain a certain degree of anonymity, you can generate a key pair, Use 1 to 2 times and discard.

It doesn’t matter how many key pairs (accounts) you generate There is no limit to how much it can produce No one can interfere. There are some Bitcoin wallets Can help you Use a different address to send and receive each time Bitcoin Although I always say to send bitcoin to the public key, in fact, Public keys and Bitcoin addresses are not exactly the same thing.

The address is actually the public key Shorter and easier to produce through several hash functions and codes The format of the spread.

We can use this picture to see how Conversion format. thanks for watching! If you have any thoughts, please leave a comment below! Welcome to subscribe to my section! see you later!.

Read More: What is Ripple?

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