Cryptographic essence of Bitcoin: Part 2 — How do public/private keys work? Elliptical Cryptography & Proof of work
Let’s find out how to create a Bitcoin Address
Elliptic Curves Cryptography
Elliptic curve cryptography (ECC) is an approach to public-key cryptography (watch video) based on the algebraic structure of elliptic curves over finite fields.
The elliptic curve below is an example of an elliptic curve, similar to that used by bitcoin.
The elliptic curve technique is used to create the public key derived from the private key.
How does it work:
Starting with a private key in the form of a randomly generated number k, we multiply it by a predetermined point on the curve called the generator point G to produce another point somewhere else on the curve, which is the corresponding public key K. The generator point is specified as part of the secp256k1 standard and is always the same for all keys in bitcoin:
K = k * G
k is the private key
G is the generator point
K is the resulting public key, a point on the curve
