The private (private) DecimalChain key is a special combination of characters that provides access to cryptocurrencies stored on the account. Only a person who knows the key can move and spend coins. The private key is an integral part of the cryptocurrency. Thanks to him, the owner of a cryptocurrency wallet is protected from losses and unauthorized access to his funds.
The user receives a public wallet address (also known as a public key) and a private key for transactions. The public address of the owner of the crypto wallet contains the funds received by him, from which he can send them to any other user.
The user's wallet stores the private key. When a transaction is created in it, the wallet software makes a digital signature, processing the transaction using the private key. This algorithm protects the system, since the only way to generate a digital signature value for any transfer is to use a private key.
The signature is used to confirm the transaction. In other words, it guarantees that after the transaction is completed, it cannot be canceled, and the funds are received from a specific user.
What is needed for
The private key performs two main functions.
The first is the secure storage of cryptocurrencies, since only someone who knows the private key can conduct transactions with these assets. That's why you need to be extremely careful when creating a key and in no case show it to third parties, and also not store it on the Internet (ideally, even on computers that are connected to the Internet).
The second function is the transaction signature. The private key is a digital signature. As mentioned above, each private key has a unique public key or address attached to it. When sending a transaction to the network, nodes check the correspondence of the sender's address with its public key, while the information about the private key remains secret for everyone, even for validators. As soon as the required number of confirmations is received, the transaction will be delivered to the recipient.
Loss of private key
The loss of a private key or its compromise is equivalent to an absolute loss of access to the wallet and the funds stored on it. It is impossible to restore or change the private key if it is lost.