Since the founding of Algorand in 2018 by Silvio Micali and team, new developments, innovations and solutions have been built on the blockchain network. I’ll be outlining a few of the latest developments and solutions on the Algorand blockchain and what it means for the global Blockchain industry/community.
THE PROBLEM OF PRIVATE KEYS?
Being crypto savvy, you’d have understood the difference between public address and private spending keys, they are as simple as their names; public spending for everyone and anyone to identify the wallet, and private spending key for the security of the wallet.
If you’ve been in the crypto space for a while now, you probably have more than 1 wallet with assets stored in them, personally I have my Algorand wallet, Trustwallet, Blockchain wallet and a few others.
Great, and for every wallet I have to save their private keys somewhere, somewhere offline that hackers can’t get to, hence I am responsible for my asset security and wallet management. Imagine I have multiple wallets for multiple purposes, it means I have to go over the process every time.
If someone got a hold of your private keys, that is the end of your asset in that wallet!
Recently, we’ve seen a lot of developments in the use of blockchain technology to provide innovative solutions, from PoW consensus to PoS consensus, from traditional finance to decentralized finance, basically replacing the old and inefficient way of doing things with new and more effective ways.
Private keys security systems for crypto assets have existed for a long time and they haven’t really been efficient in security, if someone you suspected that your private keys have been compromised you still have to transfer them to another wallet and begin the process of saving your private keys again.
These are some of the problems with Private Key securing of crypto wallet
- Process of securing a wallet is manual.
- Security is dependent on the user and not the Blockchain technology.
- No flexibility in wallet management.
What if there was a way to protect your assets by changing your private keys, but maintaining your public address and wallet assets?
Algorand presents a solution; Algorand is the first blockchain to offer users a way to easily change private spending keys without changing public address.
ALGORAND REKEYING SOLUTION!
Algorand Rekeying feature makes it cheaper to have a strong security policy around your private keys, you have your public address constant but can always change that “Private Spending key” without having to change your wallet address.
Public addresses become static and unchanging.
Private keys become dynamic and flexible..
To get a developers insight to how this works you can visit the developer resources here on Algorand Rekeying feature https://developer.algorand.org/docs/features/accounts/rekey/
SOLUTIONS OF THE ALGORAND REKEYING FEATURE
Here are the solutions possible because of the Algorand Rekeying Feature.
- You can create a “Security Policy” like a set of instructions for your public address simply by Rekeying it to a Multi sig (A multi sig address is an address backed by more than one private keys) or Algorand Layer 1 stateless smart contract to set a spending policy around your private keys, hence you can decide that one private key can spend above $1,000 or not go above it.
- You can also set your private keys to change after every transaction, spending from the account while always keeping your private key closed.
- Flexibility in wallet management; Algorand’s Rekeying Solution feature allows you the flexibility to change your private keys if you think their security is compromised, while still maintaining your public address.
- Reduce cost in wallet management and security.
- Unlimited usage of rekeying features, you can rekey as much as you want.
- Multiple options to rekey to a single key, multisig key or stateless smart contract.
ALGORAND REKEYING USE CASE
Algorand rekeying feature provides security solutions to 2 categories of users
- Enterprise Users
- Private use Users
- Large User base accounts payable
Rekeying makes it possible for organizations to create and set-up accounts for their users ahead of time and “trustlessly” without creating a long chain of transactions.
- Custody account in trading ownership of accounts for banks, exchanges etc. Organizations can use the rekeying feature to easily create accounts and fund them for our own balls.
- High security and flexibility in wallet management..
Algorand is the first Blockchain to create innovations that makes blockchain transactions easier, faster, cheaper and more secure.
To find out more about Algorand’s Rekeying Feature, watch this video and do subscribe to Algorand Channel
Follow on Twitter:
Join on Telegram:
Written by Karla Obakpolor
Follow me on twitter: https://twitter.com/_karlagod