Why Must a Private Key Be Kept Secret and Secure?
The private key is the ultimate proof of ownership and the sole authority to spend the cryptocurrency associated with its address. If a private key is exposed, anyone who possesses it can instantly sign transactions and transfer all the funds, resulting in permanent and irreversible loss for the owner.
Therefore, securing the private key is equivalent to securing the funds themselves.
Glossar
Ultimate Proof of Ownership
Finality ⎊ This concept refers to the cryptographic certainty that the holder of the corresponding private key is the sole authorized entity capable of initiating a transaction or claiming an asset on the distributed ledger.
Sole Authority to Spend
Control ⎊ Sole authority to spend refers to the exclusive power granted to the holder of a private key to authorize the movement or use of digital assets associated with a specific public address.
Private Key
Ownership ⎊ The private key is the definitive proof of non-custodial ownership over the associated cryptocurrency or the collateral securing a derivative position.