Security has always been one, if not the most important feature of cryptocurrency transactions, as it is very vital to ensure that user’s assets are protected.
There have been numerous cases of security breaches, where the hackers make away with the user’s digital assets, due to the absence of security on the wallets where these assets are stored, most of which are centralized.
As a result of their centralization, the assets are stored on a single server, giving the attackers a single point of attack through which they can gain access to the funds stored on the system.
To remedy this issue, cryptocurrency wallets were invented to allow the global users to easily store their digital assets in a decentralized way, one which is not affected by the incessant attack of hackers.
Here is how the wallet guarantees the security of a user’s assets…
Once the user creates a cryptocurrency wallet, a public address is automatically generated for the user which is open to everyone and is used to send assets into the user’s wallet.
The public address is not made secret as it facilitates the seamless transfer of assets from one wallet to another, and without it, it will be impossible to carry out this action.
Secondly, a secret key called the private key is generated upon the creation of a new wallet alongside with the aforementioned public address. With this secret key generated for the user, the security of the wallet is guaranteed and the user is put in full control of his assets, deciding who gains access to it.
A wallet can also be recovered through the use of the wallet private key.
So the combination of the private key and the public address ensures that the user’s assets are beyond the reach of hackers.
The Problem With Wallet Private Keys
Since these two features of a wallet which ensures the security of the user’s assets is generated and works as a duo for every wallet and so needs to be kept safe.
But the major challenge is that, if the private key of an existing wallet is jeopardized in any way, it is not possible to generate a new private key for the wallet, and so the assets in it are at risk of being stolen. Generating another private key would mean creating another wallet which will involve a whole new public address, discarding the old one.
It brings about the transfer of funds from the old to the new wallet, which could be very tedious and could even lead to the loss of some assets in the process.
This is obviously inefficient as it doesn’t provide a solution to the security issue which it was meant to do.
The digital assets industry needs a solution to this, to make the transactions and the storage of cryptocurrencies to become more efficient and secured.
Algorand Blockchain Platform
This is the first system to create an open-source permissionless Blockchain technology that has multiple features which makes financial operations to be seamless and efficient.
Running on the Pure Proof-of-Stake consensus mechanism, Algorand Blockchain has contributed greatly to a lot of systems performing well today with its highly sophisticated technology.
Algorand is geared towards ensuring the efficient performance of the global financial system, so it has developed different tools with which the global systems can operate and perform effectively.
Algorand Rekeying Is The Solution
REKEYING is an intriguing feature of the Algorand Blockchain platform, which was designed to serve as a solution to the private key problem stated above which is faced by users.
This rekeying feature of Algorand makes it possible for a user to protect their wallet by easily changing their private key, without having to change the public address as well, as seen in the regular wallet where the public address has to be changed too in the process of changing a private key.
As the name implies, rekeying gives the user the ability to safeguard their digital assets stored on the wallet by seamlessly getting a new key once there is a threat or any form of compromise on the existing key.
What Does The Algorand Rekeying Guarantee?
Rekeying as invented by the Algorand platform to help advance the cryptocurrency industry and make it more efficient guarantees a lot of benefits, let’s take a close look at some of them.
- Security is one of the many benefits guaranteed by the introduction of the Algorand Rekeying, as it helps ensure that the users stay on top of the game every time, controlling their wallet and having the ability of changing it to a different on, once they sense any form of threat that could claim their assets.
- Longevity of cryptocurrency wallets is also guaranteed with Rekeying in play, seeing as a lot of wallets are discarded or wasted upon the creation of a new one, in the quest to change private key since it was not possible to have a new private key on an existing wallet.
But now, there will be no need of discarding any wallet, as any user can readily change their wallet private key and still retain its public address.
- Absence of the stress and tediousness involved in moving assets from a wallet with a compromised private key, in search for safety, is also ensured through this Rekeying as it will now be a thing of the past, as there will be no need of moving assets in the first place, where a user can easily generate a new private key.
- Efficiency of cryptocurrency wallets is now in sight with the development of the Rekeying feature by Algorand Blockchain system seeing how improved it will become with this feature, moving beyond any form of security threats even one involving private keys and also being relevant at all times as there will be no need to discard any wallet for a new one.
The Rekeying feature developed by Algorand is indeed a great innovation in the cryptocurrency industry as well as a blessing for the global financial system, as it will make the use and storage of these digital assets to be easier and safer in turn improving the global economy.
This also shows how much the Algorand Blockchain system is contributing to improving the global system through improved techniques and technologies.