Ethereum: How is an NXT account address generated? Why do we need to send out a transaction in NXT to secure the address?

Understanding Ethereum Account Addresses and Transacting with NXT

As a growing community of cryptocurrency enthusiasts, we’re excited to introduce you to the world of blockchain technology and Nxt (N). In this article, we’ll delve into how Ethereum account addresses are generated and why sending transactions in NXT requires caution.

Ethereum Account Address Generation

On the Ethereum network, an account address is a unique identifier used to identify a user’s wallet. Each address has a specific length, typically between 42 and 54 characters, which includes the domain name (e.g., “example.com”). The first two or three characters are reserved for the network, while the remaining characters are used as the recipient’s Ethereum account.

Here’s an example of an Ethereum account address:

0x1234567890abcdef

In this format:

• 0x indicates that it’s a hexadecimal string.

• The letters represent the first three characters, which are reserved for network purposes.

• 1, 2, and 3 are used to indicate the last nine characters.

Why Send Transactions in NXT?

When you send a transaction out of your NXT account, you’re actually sending it to an unknown recipient. This is because the sender’s account address is not publicly displayed on the blockchain. In fact, the entire Ethereum network doesn’t have direct access to a user’s account information. This is a security feature designed to prevent potential fraud and malicious activity.

Here’s what happens behind the scenes:

• When you create an NXT wallet, it generates a public address (also known as a “seed phrase” or “Mnemonic”).

• The recipient’s public address is generated based on their seed phrase, which is stored securely in their NXT wallet.

• To send a transaction out of your NXT account, you need to use the recipient’s public address. However, since this address is unknown at the time of sending, you’ll need to “sign” the transaction using your own private key.

Why Can’t You Just Use Your Public Address?

There are several reasons why you can’t simply use your public NXT account address:

• Security: By not being directly linked to a user’s Ethereum account information, you’re protecting against potential phishing or identity theft attacks.

• Consensus mechanism: The Ethereum network relies on a consensus mechanism (proof-of-work) to validate transactions. Without direct access to the sender’s account information, the network can’t verify that the transaction is legitimate. By using your public address and signing the transaction with your private key, you’re ensuring that the transaction is valid.

• Private keys

  

  : Your private key is stored securely in your NXT wallet, and it’s used to sign transactions on behalf of the recipient.

Conclusion

In summary, Ethereum account addresses are generated based on a user’s seed phrase or mnemonic, which is then linked to their public address. To send a transaction out of an NXT account, you need to “sign” the transaction using your private key, which ensures that the transaction is valid and secure. By understanding how Ethereum account addresses work and why sending transactions in NXT requires caution, you can better navigate the world of cryptocurrency and enjoy the benefits of this exciting technology.

As we continue to learn and grow as a community, please remember to stay informed about best practices for using NXT and other cryptocurrencies responsibly.

Categorised in: CRYPTOCURRENCY

This post was written by Munna