Private Key
Definition
A cryptographic key that proves ownership of cryptocurrency and authorizes transactions. Whoever controls the private key controls the associated funds.
A private key is a long string of characters (typically 256-bit hexadecimal) that serves as the password to your cryptocurrency. It mathematically corresponds to a public key (your wallet address), but cannot be derived from it. This one-way mathematical relationship is the foundation of blockchain security.
When you send cryptocurrency, you digitally sign the transaction with your private key. The network can verify the signature using your public key without ever seeing the private key. This proves you authorized the transaction without revealing the secret itself.
In practice, most users never see their raw private keys — wallet software manages them behind the scenes, protected by your wallet password and backed up via your seed phrase. The seed phrase is actually a human-readable encoding of the master key from which all private keys are derived.
Private key security is paramount. If stolen, there's no recourse — transactions on blockchain are irreversible. If lost, there's no recovery without the seed phrase or backup. This asymmetry (easy to lose, impossible to recover) is why hardware wallets and proper backup procedures are so important.
Never share your private key or seed phrase with anyone for any reason. Legitimate services will never ask for it. Any request for your private key is a scam, even if it appears to come from a trusted source.
Where this appears in Clarity
Clarity automatically tracks and calculates these concepts across your connected accounts.
Related Terms
Frequently Asked Questions
What's the difference between a private key and a seed phrase?
A seed phrase generates all your private keys. Each wallet address has its own private key, but the seed phrase is the master key that derives them all. Backing up the seed phrase effectively backs up every private key in your wallet.
Can a private key be hacked?
Brute-forcing a private key is computationally infeasible — there are more possible keys than atoms in the universe. However, private keys can be stolen through malware, phishing, or poor storage practices. The key itself is unbreakable; the risk is in how you handle it.