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I have built a new PC and had to buy Windows from retailer store.

During the installation I entered the 25 digit key. Created only local account.

Now I was curious about the installation process and saw: Windows is activated with a digital license.

Why is it activated using a digital key? I did use the 25 digit key from inside the bought Windows box. Went something wrong?

Michael
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The code is physical but the license itself is digital. As you used that key, Microsoft has licensed your specific hardware to that key, so reinstallation probably won't need another key. This is also why if you change the motherboard it asks you to activate again.

If you do end up replacing the parts and the key doesn't let you activate, it is worth telling Microsoft about it and they will unlink the current activation so you can use it on your new build.

Also, just to answer your question, nothing went wrong here. As long as it says it is activated and the "Activate Windows" watermark is not there, you don't need to worry about anything. In the future should anything happen, you have the receipt of your license code purchase so you can ask them (Microsoft Technical Support) to help you out with it.

QuickishFM
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  • I expected it to say something like that: Windows is activated. Key: bla bla... that digital license is confusing – Michael Feb 16 '20 at 13:39
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    While you can probably still extract the key using tools such as "jellybean key finder" (if that even still works, I'm thinking back to the XP days) i think the recent change in Windows 10 (perhaps earlier in windows 8 maybe...) is that the license isn't tied to a key anymore, rather the key is used as a binding mechanism for MS servers to register your specific hardware (I think it uses serial numbers to make a signature, like a hash function) so that even if you have to reinstall without the key, your hardware signature is tied to a valid license so it's activated out-of-the-box. – QuickishFM Feb 16 '20 at 13:43
  • ^^You will also notice this on newer laptops which no longer ship with a key on a sticker, rather the specific motherboard is already registered with MS (in bulk at the factory I assume) so every time you re-install, you don't need a key (i.e. you can skip it at install and it'd be activated as soon as it gets internet access). From this we also know that the price of the windows license is included as part of the retail price - often why custom builds are cheaper since some people don't use Windows so won't need to pay for the license (or are *less than honest* about it) – QuickishFM Feb 16 '20 at 13:45
  • @QuickishFM The key is used to create a digital license. After that the key is not recoverable. This is true for both windows and office now. Only the last 5 characters are available. In addition, OEM computers have a product key embedded in the hardware, which Windows will use automatically and which is recoverable. If the OP has not used a Microsoft account then they will need the original key to activate windows at a future time. – Appleoddity Feb 16 '20 at 14:00
  • Ah, yes, I forgot it was tied to the MS account too. I think having the original MS account with license will also help authenticate yourself, should you need to reactivate upon changing the mobo. Thanks for clarification about key retrieval; I haven't needed to even think about doing so for many years now as the last Windows I used properly (daily) was Windows 7. Thankfully there's no such problems in Linux :) – QuickishFM Feb 16 '20 at 14:10
  • Key is embeded in the bios on all newer PC's, this started with W10, maybe earlier. – Moab Feb 16 '20 at 16:53