Our main intention is to build Coin Guides as a largest resource site for Bitcoin, Blockchain and Cryptocurrency. Not just for beginners, but we want users of all kind to find reliable resource crypto games from this website. Recently we’ve posted several wallet setup guides for beginners without explaining in depth features of what one can do with a crypto currency wallet address. Here this article is going to explain one cool function that you can do with your wallet address known as sign message. What is sign message? How sign messages work? And how to sign a message with your Bitcoin, Dash, Litecoin, Monero and basically any alt coin addresses.
What is a sign message? Wallet Signing – Digital Signatures
Digital signature is a mathematical way of authenticating documents and digital messages. The signing mechanism is the way of proving that a particular message or a piece of data comes from your end and not from someone else. By signing a message to your Bitcoin or crypto currency address you are demonstrating that you are the owner of the funds that a wallet holds. Also you prove that you control the private keys of the particular address
Why to sign a message?
Sign message is a kind of ID system to prove the ownership of Bitcoin or crypto currency address. There are many scenarios in which signing a message will be beneficial.
Let’s say you want to show the amount of Bitcoins to your friends or a third party which you hold in your wallet. You can simply provide them your public address and they can check it in block explorer. It will show your transaction details and the amount of Bitcoins your wallet holds. However it doesn’t prove that you are the owner of that address.
Blockchain and crypto currency are transparent so basically using block explorer you can check the balance and transaction details of any wallet address. So your Friends or third party won’t believe that the wallet address is yours until unless you prove them.
The only way you can be certain for yourself that you have full control of your own wallet is by owning the private keys. However private keys should never be shared to anyone to prove the ownership. This is when message signing and verification feature helps you. Without revealing your private keys you can prove the ownership by sharing your wallet signature.
Wallet signatures also largely helpful in ICO’s. For example Ethereum is well known for smart contracts so to purchase tokens vendors will ask for ETH as a payment. Before sending you the tokens third party needs to verify that you are the actual person that sent ETH. You can prove them by sending your wallet signature along with the a custom message. With this signature third party can verify the ownership. Hence the deal becomes transparent.
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