Public and private keys are an important aspect of most crypto-systems and an essential component that enables blockchains like Edgeware to exist. Edgeware uses multiple sets of public/private key pairs to represent participants of the network.
Blockchain systems have participants in varying roles, for example from validators to normal users.
As an example, the Substrate node uses a Nominated Proof-of-Stake (NPoS) algorithm to select validators. Validators and nominators may hold significant amounts of funds, so Substrate's Staking module introduces account abstractions that help keep funds as secure as possible.
These abstractions are:
Stash Key: The Stash account is meant to hold large amounts of funds. Its private key should be as secure as possible in a cold wallet.
Controller Key: The Controller account signals choices on behalf of the Stash account, like payout preferences, but should only hold a minimal amount of funds to pay transaction fees. Its private key should be secure as it can affect validator settings, but will be used somewhat regularly for validator maintenance.
Session Keys: Session keys are "hot" keys kept in the validator client and used for signing certain validator operations. They should never hold funds.
Account keys are keys that are meant to control funds. They can be either:
ed25519 implementation using Schnorr signatures.
sr25519 variant using Schnorr signatures.
There are no differences in security between
sr25519 for simple signatures.
ed25519 to be much better supported by commercial HSMs for the foreseeable future.
At the same time,
sr25519 makes implementing more complex protocols safer. In particular,
sr25519 comes with safer version of many protocols like HDKD common in the Bitcoin and Ethereum ecosystem.
When we talk about "controller" and "stash" keys, we usually talk about them in the context of running a validator or nominating EDG to a validator, but they are useful concepts for all users to know.
Both keys are types of account keys. They are distinguished by their intended use, not by an underlying cryptographic difference. All the info mentioned in the parent section applies to these keys. When creating new controller or stash keys, all cryptography supported by account keys are an available option.
The controller key is a semi-online key that will be in the direct control of a user, and used to submit manual extrinsics. For validators or nominators, this means that the controller key will be used to start or stop validating or nominating. Controller keys should hold some EDG to pay for fees, but they should not be used to hold huge amounts or life savings. Since they will be exposed to the internet with relative frequency, they should be treated carefully and occasionally replaced with new ones.
The stash key is a key that will, in most cases, be a cold wallet, existing on a piece of paper in a safe or protected by layers of hardware security. It should rarely, if ever, be exposed to the internet or used to submit extrinsics. The stash key is intended to hold a large amount of funds. It should be thought of as a saving's account at a bank, which ideally is only ever touched in urgent conditions. Or, perhaps a more apt metaphor is to think of it as buried treasure, hidden on some random island and only known by the pirate who originally hid it.
Since the stash key is kept offline, it must be set to have its funds bonded to a particular controller. For non-spending actions, the controller has the funds of the stash behind it. For example, in nominating, staking, or voting, the controller can indicate its preference with the weight of the stash. It will never be able to actually move or claim the funds in the stash key. However, if someone does obtain your controller key, they could use it for slashable behavior, so you should still protect it and change it regularly.
Session keys are hot keys that be must kept online by a validator to perform network operations. Session keys are typically generated in the client, although they don't have to be. They are not meant to control funds and should only be used for their intended purpose. They can be changed regularly; your controller only need create a certificate by signing a session public key and broadcast this certificate via an extrinsic.
Edgeware uses four session keys:
I'm Online: sr25519
GRANDPA requires keys suitable for use in a Verifiable Random Function as well as for digital signatures. Sr25519 keys have both capabilities and so are used for GRANDPA.