Cryptocurrencies rely on public-key cryptography, where a public key is used as a digital wallet address for sending and receiving cryptocurrencies, while a private key is used to prove ownership of the wallet and to validate outgoing transactions from that address with a digital signature.
There are 2 main benefits of keystore files:
- Usability: Private keys are long strings of letters and numbers that aren't practical to memorize, so keystore files can improve wallet usability by enabling wallet owners to access their wallet and move funds with a password of their choosing.
- Security: Hackers who are trying to steal cryptocurrency would need both the keystore file and the associated password in order to gain access to a digital wallet, whereas an unencrypted private key can be used on its own to access a wallet.
Most major cryptocurrency wallets give users the ability to use a keystore file.
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- CryptocurrencyA cryptocurrency (or crypto currency) is a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency. Cryptocurrencies are a subset of alternative currencies, or specifically of digital currencies.
- BitcoinBitcoin is a cryptocurrency and a digital payment system invented by an unknown programmer, or a group of programmers, under the name Satoshi Nakamoto. It was released as open-source software in 2009.
- EthereumEthereum is an open-source, public, distributed blockchain computing platform featuring smart contract (scripting) functionality, which facilitates online contractual agreements.