Do you mean “Enter passphrase (empty for no passphrase):” ?

@gp+digitalocean
No its the end of this part:

The authenticity of host ‘12.34.56.78 (12.34.56.78)’ can’t be established.
RSA key fingerprint is b1:2d:33:67:ce:35:4d:5f:f3:a8:cd:c0:c4:48:86:12.
Are you sure you want to continue connecting (yes/no)? yes
Warning: Permanently added '12.34.56.78’ (RSA) to the list of known hosts.
user@12.34.56.78’s password:

It looks like you didn’t properly authenticate with the key, so it’s falling back to password authentification. You’ll want to review authentification logs and verify the SSH key has been correctly added to authorized_keys, and that your client is sending it.

@gp+digitalocean
The SSH key has not been added to the authorized_keys file, all I see is the root key. Also am I supposed to be running the commands to create an SSH key on my personal machine or the Digital Ocean server?

You create the key on your machine, then you add the public key to the user’s authorized_keys file on the server so it can be authenticated.