I’ll try my best to explain Ethereum concepts in a super simple way, without putting too much stress on your brain. Don’t worry if you don’t understand everything – I’ll break it down slowly!
P2PK (Public Key Cryptography)
Imagine you have a secret address, like a special phone number that only you know. This is called a “public key.” When someone sends money to you using Ethereum, they’re sending that secret address.
Here’s how it works:
- A person creates a private key and a public key.
- They use the private key to sign transactions (like a message) using their own computer or wallet.
- The sender includes their public key in the transaction, along with some other information.
- The transaction is broadcast to the Ethereum network.
When your friend receives this transaction, they can verify it by:
- Using their private key to “decrypt” the transaction (just like a secret code).
- Signing the transaction using their own computer or wallet.
P2PKH (Public-Key Hardware Wallet)
This is like having a super-secure, special box that keeps your private key safe and secure! It’s like having a digital safe at home where you keep your most important treasures.
Here’s how it works:
- You install P2PKH software on your computer or device.
- When someone sends money to you using Ethereum (like the public key), they include their P2PKH private key in the transaction.
- The transaction is broadcast to the Ethereum network, and it goes straight into your digital safe.
P2SH (Seal-Only Public Key Hash)
Imagine you have a super-long secret message that you want to send to someone else. You can’t just share the entire message with them; instead, you give them the first few letters, and they must figure out the rest themselves!
In P2SH transactions:
- A person creates a private key and a public key (like a short version of your secret address).
- They use their private key to sign transactions.
- The sender includes only the first few letters of their private key in the transaction, along with some other information.
- The transaction is broadcast to the Ethereum network.
Your friend receives the P2SH transaction and can verify it using their own computer or wallet, just like they would with a normal public-key transaction!
P2WPKH (Seal-Only Wallet Private Key)
This is similar to P2PKH, but instead of storing your private key on your device, you store the first few letters of your private key in the form of a digital signature.
Here’s how it works:
- You use your P2WPKH wallet software (a special program) to create and manage your digital signatures.
- When someone sends money to you using Ethereum, they include their P2WPKH private key in the transaction.
- The sender signs the transaction with their own computer or wallet, but only includes the first few letters of their private key as a digital signature.
Your friend receives the P2WPKH transaction and can verify it by:
- Using their own P2WPKH wallet software to create and manage their digital signatures.
- Signing the transaction using their own computer or wallet.
The Difference between BTC in P2SH and Unspent…
Unspent (U SPENT) refers to the remaining balance of a cryptocurrency like Bitcoin (BTC). Think of it like money in your bank account – only part of it is spent, and the other part remains unspent until you do something with it.
P2SH transactions are like spending money from your account. They’re broadcast to the network, where miners verify and validate them, and then spend or store any remaining unspent balances.
On the other hand, P2WPKH transactions are like writing a check (digital wallet). The sender includes their private key in the transaction, which proves they own that amount of cryptocurrency.
