What is a Private Key?
In the Vaulta wallet, a private key is a unique, randomly generated 256-bit number. Think of it as the ultimate credential for verifying your identity and signing transactions within the Vaulta system. For user convenience, it's encoded in a way similar to Bitcoin's Wallet Import Format (WIF), making it easy to back up and import.
Vaulta private keys typically begin with "5," "K," or "L" and are encoded using Base58Check. For example, a Vaulta private key might look like this: 5KcryqKESci1TJbW4bsSVRStdcPRdqmJets1f9G225iqW3KBfEC.
Your private key is crucial because it represents your complete control over the tokens in your Vaulta account. If you lose your private key, you lose access to your account and its assets. Therefore, it's paramount to keep your private key confidential. If it falls into the wrong hands, your assets are at risk.
Possessing your private key grants you full authority over your wallet's tokens. Should you remove your wallet or switch to a new device, you can always regain access by importing your private key.
Functions of a Private Key
In Vaulta, the private key's main role is to generate transaction signatures. Unlike some other cryptocurrency systems, Vaulta doesn't directly derive wallet addresses from the private key. This is thanks to Vaulta's account-based system, which is similar to Ethereum Name Service (ENS). This system uses easily memorable account names, assigned through a registration process, rather than complex addresses derived from a private key.