Friday, 2 November 2018

How to Create and Set Up an Ethereum Account

Ethereum is an open software based on blockchain technology with the help of which developers all over the world create and deploy decentralized applications. Ethereum is also a distributed blockchain network like Bitcoin. Though both Bitcoin and Ethereum are based on the blockchain, there are technical differences between them.

ethereum-wallet


In Ethereum blockchain miners mine to earn Ether Token, however, users need Ethereum account to interact with Ethereum in any way.

Mist Ethereum wallet


Mist Ethereum wallet is the application which allows users to create and manage multiple Ethereum accounts at the same platform. This is the most simple way to create an Ethereum account. The application is simple to use and when you will first launch the application it will guide you step by step. The application syncs with Blockchain which means it will download entire blockchain data along. This will take 100 GB which is a big space, just a warning.

Download Mist Ethereum wallet(https://github.com/ethereum/mist/releases)

Install and launch the application

Create a password for your account. (Note: - Once the password is set, you cannot change the password ever. Remember your password strongly.)

Once you set up the password, it will take you to the account page. You can manage your whole account. You can view your balance, contract, and linked accounts.

Click on the main account to find the address of your main account. There is a hexadecimal string below your account name. This string is your Ethereum account address.

To add another Ethereum account, click on add account.

Note:- You can get your public key from your account. This is your public address which you can share with someone to take ether from them

Go Ethereum or GETH


This is another easy way to create an account. The process is quite similar. You can download and install the Go Ethereum client. Launch the application to create a strong password for your account. Remember you cannot change the password or create a new one. Once the application is launched you can view the public address of your account. This will also allow you to create multiple accounts. All your accounts will be listed in the application.  

Sending Ether from Ethereum wallet
Log in to the account
Click on send
Enter the public address of the recipient
Select the amount you want to sen
Enter the password
Send

The interesting thing here is, you do not have to have internet connectivity to create an account. You can even create an account offline. You must be a thing how it is possible.

In this process, we generate a cryptographic key which is a pair of a public and private key. So if we create it offline, why do not we need to register it somewhere? Maybe someone else is already using this key pair. This sound true and technically possible however the probability is highly impossible. There are three steps involved to generate a public key. Firstly, we need to generate a private key which is a random number of 256 bits. Then we create a public key which is of 512 bit. At last, we calculate Keccak256 hash the of the public key. To get the public address we keep the rightmost 160 bits. So basically the256-bitt private key is mapped to160-bitt public key. The security of it lies in the randomness of the key. As long as it is a completely random number, it is highly improbable to guess and the be same.