Contents
Private Key
A private key is a secret piece of data used in cryptography used to verify ownership. In the context of cryptocurrency, a private key can be used to authorize transactions and prove control of digital assets. Most cryptocurrency wallets allow users to uniquely generate a new random seed phrase, or to import a previously-created seed phrase that is used to produce the master private key. Many wallets can create additional hierarchically-derived private keys for various purposes, but your master private key is what people often refer to as your crypto wallet “private key.”
Key Characteristics
- Must be kept secret by the owner
- Used to sign/authorize crypto transactions
- Part of a keypair system (works with corresponding public key)
- There can be more than one private/public key pair — as with Hierarchical Deterministic (HD) Wallets
Relationship to Seed Phrase
- The seed phrase is the source from which private keys are calculated.
- One seed phrase is used to generate both master private and public keys.
- If your wallet is lost or destroyed, the seed phrase can regenerate the private and public keys.
Relationship to Public Key
- Private and public keys work as a related pair.
- The private key must be kept a secret, because it is used to create a unique “authenticity stamp” to approve transactions.
- The public key can safely be shared. It is used to identify the payment location on the blockchain network, functioning in this way like an “accounts receivable” address.
Security Implications
- The private key proves ownership of cryptocurrency — whoever holds a wallet's private keys controls the crypto.
- It must be protected from unauthorized access!
- It cannot be recovered if lost, so must be backed up securely!
Related terms
- public key
- seed phrase
- crypto wallet
- hardware wallet
- Hierarchical Deterministic (HD) Wallets
Vault12
Vault12 is the pioneer in crypto inheritance and backup. The company was founded in 2015 to provide a way to enable everyday crypto customers to add a legacy contact to their cry[to wallets. The Vault12 Guard solution is blockchain-independent, runs on any mobile device with biometric security, and is available in Apple and Google app stores.
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You will lose your Bitcoin and other crypto when you die...
...unless you set up Crypto Inheritance Management today.
It's simple — if you don't worry about crypto inheritance, nobody else will — not your software or hardware wallet vendors, not your exchanges, and not your wealth managers. So it's up to you to think about how to protect the generational wealth you have created, and reduce the risks around passing that wealth on to your family and heirs. What are the challenges with crypto inheritance?
- Crypto Wallets are difficult to use and do not offer crypto inheritance management. In fact, most of them tell you to write down your seed phrase on a piece of paper, which is practically useless.
- Some people back up their wallet seed phrases or private keys on paper, local devices like hardware wallets or USBs, or in the cloud. All of these options have severe drawbacks that range from hacking to accidental loss to disrupted cloud services.
- Software wallets operate onspecific blockchains, yet your crypto assets span multiple blockchains. For inheritance to work, you must be able to manage inheritance across every blockchain — now and forever.
Crypto Inheritance Management: Get ready today
Vault12 is the pioneer in Crypto Inheritance Management, and offers an easy-to-use and secure method for assigning a legacy contact to your crypto wallets. Vault12 Guard enables you to pass on your wallet seed phrases and private keys for any cryptos including Bitcoin (BTC) and Ethereum (ETH) to future generations. It's designed for everyday people, yet strong enough for Crypto OGs.
This innovative, decentralized system uses a hybrid approach of software fused with the Secure Element of phone devices (the Secure Enclave for iOS devices, and Strongbox for Google devices).
Vault12 Guard enables users to appoint one or more people or mobile devices as Guardians. The designated Guardians are entrusted to collectively protect the user's comprehensive collection of wallet seed phrases and private keys, which are safely stored within a decentralized digital Vault. Nothing is stored on cloud servers or Vault12 servers, and no assets are stored on local devices, making them less of a target.
The decentralized approach reduces points of failure and removes the necessity for regularly revising wallet inventories or modifying instructions for your lawyers (which could lead to privacy breaches). Simply put, Vault12 Guard is the best way to preserve crypto generational wealth.
Take the first step and back up your crypto wallets.
Designed to be used alongside traditional hardware and software crypto wallets, Vault12 Guard helps cryptocurrency owners back up their wallet seed phrases and private keys (assets) without storing anything in the cloud or any single location. This increases protection and decreases the risks of loss. Making sure you have an up to date back up is the first step in crypto inheritance management.
The Vault12 Guard app enables secure decentralized backups and provides inheritance for all your seed phrases and private keys across any blockchain, including Bitcoin, Ethereum, ERC-20, and other crypto wallets.
Note: For anyone unfamiliar with cryptocurrencies, Vault12 refers to wallet seed phrases and private keys as assets, crypto assets, and digital assets. The Vault12 Guard app includes a software wallet that works alongside your digital Vault. The primary purpose of this is to guard your Bitcoin (BTC) or Ethereum (ETH) wallet seed phrases, private keys, and other essential data, now and for future generations.
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