I will do my best to explain Ethereum concepts in a super simple way, without putting too much stress in your brain. Don’t worry if you don’t understand everything – I’m going to break it slowly!
P2PK (public cryptography)
Imagine that you have a secret address, such as a special phone number that you alone know. This is called the “public key”. When someone sends you money using Ethereum, he sends this 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 (such as a message) using their own computer or wallet.
- The sender includes his public key in the transaction, as well as other information.
- The transaction is transmitted to the Ethereum network.
When your friend receives this transaction, he can check by:
- Use of your private key to “decipher” the transaction (as a secret code).
- Sign the transaction using your own computer or wallet.
P2PKH (Public key material portfolio)
It’s like having a special and super secure box that keeps your private key safely! 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 you money using Ethereum (like the public key), it includes your private P2PKH key in the transaction.
- The transaction is transmitted to the Ethereum network and goes directly to its digital safe.
P2SH (hastement of public key switch only)
Imagine you have a super long secret message you want to send to someone else. You can’t just share the whole message with them; Instead, you give them the first letters and they must discover the rest!
In P2SH transactions:
- A person creates a private key and a public key (like a short version of their secret address).
- They use their private key to sign transactions.
- The sender includes only the first letters of his private key in the transaction, as well as other information.
- The transaction is transmitted to the Ethereum network.
Your friend obtains the P2SH transaction and can check it using your own computer or wallet, just as he would with a normal public key transaction!
P2WPKH (private key to the sealing portfolio only)
This is similar to P2PKH, but instead of storing your private key from your device, you store the first letters of your private key in the form of a digital signature.
Here’s how it works:
- You use your P2WPKH portfolio software (a special program) to create and manage your digital signatures.
- When someone sends you money using Ethereum, it includes your private P2WPKH key in the transaction.
- The sender signs the transaction with your own computer or wallet, but only includes the first letters of your private key as a digital signature.
Your friend receives the P2WPKH transaction and you can check by:
- Using your own P2WPKH portfolio software to create and manage your digital signatures.
- Sign the transaction using your own computer or wallet.
The difference between BTC in P2SH and not spent …
Not spent (u expenditure) refers to the remaining balance of a cryptocurrency such as Bitcoin (BTC). Consider it as money on your bank account-only part of it is spent and the other party remains without spending up to something.
P2SH transactions are like spending money on your behalf. They are transmitted to the network, where minors check and validate them, then spend or store any remaining balance.
On the other hand, P2WPKH transactions are like writing a (but digital) check. The sender includes his private key in the transaction, which proves that he has this amount of cryptocurrency.