How Wallets Generate Ethereum Addresses
Ethereum wallets generate addresses using a series of cryptographic techniques that involve a user’s private key. Here’s a step-by-step breakdown:
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Generation of the Private Key:
Wallet apps create a private key randomly using secure cryptographic algorithms. This private key is a secret number that allows access to the associated funds.
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Derivation of the Public Key:
From the private key, a public key is generated through an elliptical curve multiplication process. The public key is derived using the secp256k1 curve, ensuring high-level security and mathematically ensuring that it can only be computed from the private key.
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Hashing the Public Key:
The public key is then hashed using the Keccak-256 hashing algorithm, which is a variant of SHA-3. This produces a 64-character hexadecimal string.
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Creating the Ethereum Address:
To generate the final Ethereum address, the last 20 bytes of the hashed public key are taken. This 40-character hexadecimal string is the Ethereum address, which is what users share with others to receive funds.
Importantly, the generated Ethereum address is a one-way function: while the address can be used to receive funds, it cannot reveal any information about the private key, keeping the user’s assets secure.