Question 1

Explain private and public Keys in relation to custodial and non-custodial wallets.

Public key is basically a address to your wallet. That we can secure our assets. As when the coins are send to the wallet they are encrypted by the public key. Public key is used to encrypt data as on the ither hand private key is used to decrypt data. Bith the keys are asymmetric keys. Publuc key can be publicly seen and is used to unlock, the coins in wallet.

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As on the other hand private key is key which h is used to decrypt messages. When the person send the message which has been encrypt by the public key to the other person on the network, so this message is now been decrypt by the use of private key. If the person is known about your private key than he can have access to your wallet and perform the transaction and also can easily withdraw your asset by having private key.

It simply meams, if a person having access to your private key he can do transactions and proves to be the owner of the asset in the wallet.

There are two types of wallets

• custodiol wallet
• non custodiol wallet

Custodiol wallet

A custodiol wallet work in such a way that the private key of the wallet is the hands of the third person. As in this case the owner trust the third person and hand over the private key and the fund to that person. This person has your account information as private amd public both the keys. But un this wallet you do not have the full control over your wallet as you dont have your private key and having public key means you can open your wallet and see the reputation of your wallet.

And the third party van withdraw on your behalf because they have your private keys which means having access to your wallet so such wallets are not trustworthy as this may results fraud by the party and the wallet can also be hacked because it can easy to hack as it is a Centralized platform.

Non. Custodiol wallet

In non custodiol wallet all information regarding the account is only in the hands of user only. The user have full control over the account he perform all his transactions without the involvement of the third party the account has been controlled and managed by your own. But you should take care of your private keys as if they are lost or in any incident you lost your private keys than you have lost your account too. Because if you lost than tgeere is no way to recover your keys one lost than you can't do anything. So be careful while keeping your privacy secure.

Question 2

What do you think about the Proof of Keys Day? What precautions would you take when participating?

The day named as proof of key day has been celebrated on 3rd January. This day is for the awareness for the newcomers about the non custodial wallets.

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The main aim of this day is that they take out the fund from centralized wallet and hold them into the decentralized wallet.
This is done for the purpose that people using centralized wallet are not that much secure so they can now easily transfer their assets to decentralized wallet which is secure as their is no middle man in this case.

Precautions that must taken before participating :

Before having the transaction from custudiol wallet to a non cuatodiol wallet he have to be careful about the private key because as mentioned above in the custodial wallet the lrivate key has been kept by the third party so we have to be sure that we received the private keys of our account.

And we have to be careful about the private keys because losing private keys means simply losing the whole account which cannot be recovered.

Cautions must be taken before transferring your asset to a non custodial wallet first read about the wallet and all the directions and choose carefully the appropriate wallet.

Question 3

Do you prefer Centralized exchanges or Decentralized wallets for storing your cryptocurrencies? Why?

In my opinion i preferred Decentralized wallet over the centralised exchange and the reason are given below:

• There is not any kind of involvement of the third part in Decentralized wallet. So it is more safe way to keep your keys with you only and nobody will have access to the the account.

• As it is more important to keep your private keys with you so that you may take more care of your account if there is middle or any third party they can access to your account that in my opinion is not that much secure.

• In Decentralized exchange, data is not centralized as it is not stored in central place and in Centralized exchange data is stored in central server if due to any reason the server becomes faulty the whole network will be failed.

• It is very convenient to have access to decentralise wallet. As there is no third party to whom you have to contact with you can easily withdraw your asset as when you need and feel comfortable.

• As all you need is less cost and effective function that we can get with decentralized wallet as they are easy to use and reliable. Depositing asset in Decentralized wallet give you many options you can buy tokens, crypto coin amd many more.

• As it is very important for the user of Decentralized wallet to keep your wallet safe and keep the private keys in secure place. The best thing in Decentralized wallet is it not get hacked easily on the other centralised wallet get hacked because they are centrally placed and have no transparency as compare to Decentralized wallet.

Question 4

Let us assume it is Proof of Keys Day:

a.)Transfer at least 20 Steem from your Binance wallet to your Steemit wallet.

Step 1

Step 2

Step 3

Step 4

b.) Transfer at least 50 TRX from your Binance wallet to your TronLink wallet.
(Provide Screenshots and make sure you have your Keys).

Step 1

Step 2

Step 3

Step 4

In one statement, what is the major significance of the transfers on question 4.

As above you have noticed that i use decentralised exchange it is very easy to transfer asset to decentralized wallet.
You just have to use your key and wallet will perform the transaction. As the binance exchange works efficiently. So,it becomes easier to perform the transaction.you can easily transfer the coin so that we can say that binance is working transparently. Because if i could not be able to withdraw the coins i must say that binance is using the coin in somewhere else or there is no liquidity but here we can say that binance is working in a great manner.

Conclusion

This lecture by @awesononso,i would able to understand the Proof of keys that how much they are important in the crypto. These keys are very important to understand and i get to know some new things about the crypto currency.

These both public and private keys are linked with each other. The private key is most important key whuch must be keep in security. As this key can not be recover by the public key while on the other hand public key can be obtained by the private key.

You may be careful while storing private key because keeping non-custodial wallet tbere is no body in the middle who have access to your account so you may be careful anout your private key.
Thank you professor for great lecture.