The Advance of Cryptocurrency Wallet with Digital Signature

Abstract

This paper explains the composition of the cryptocurrency wallet by analyzing a wallet’s components, functions, categories, the algorithm of signing, and security features as three major components used in the constitute of the cryptocurrency wallet, private key, public key, and address are introduced from their generation process with specific Elliptic Curve Digital Signature Algorithm secp256k1 and Keccak hash function. A variety of crypto wallets are divided into different categories by their purpose of use, the form of display, and Internet connectivity, and multiple crypto wallets are explained in the second part of this paper. The elliptic curve secp256k1 is selected in Ethereum for both calculating the public key information and performing signing transactions. This paper details secp256k1 and Keystore used behind the signing process and security of cryptocurrency wallet and outlines potential risks due to the development of computing power and transfer of validation system in Ethereum.