Key management

In crypto, “key management” describes the processes and practices involved in generating, storing, and safeguarding cryptographic keys used in web3. Use cases include basic encryption, decryption, and digital signatures – such as signing a transaction through a crypto wallet such as MetaMask. Cryptographic keys are essentially strings of data that are crucial for secure communication and transaction verification within the crypto world.

The process of key management starts with key generation. That’s where cryptographic keys are created using algorithms and random number generators. These keys come in pairs: a public key and a private key. The public key is visible to all and used for encryption or verifying digital signatures, while the private key is only meant for the end-user and used for decryption or creating digital signatures. The second piece of key management is key storage, meaning securely storing private keys to prevent unauthorized access or theft. This can be done with hardware wallets, secure software wallets, or even offline paper wallets. Finally, sound key management involves establishing secure backup and recovery mechanisms to ensure that keys are not lost or irretrievable in case of device failure or accidental deletion.