Proof of Keys - Steemit Crypto Academy - S4W7 - Homework Post for @awesononso

in hive-108451 •  3 years ago 

Hello All Steemians !!!

On this occasion, I will try to take a class at Steemit Crypto Academy. I am interested in joining this class because there are many new lessons that I will get here. I will do homework task from professor @awesononso. Lesson discussion about Proof of Keys. Lets try...

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Source

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

Public Key

Public key is an algorithm that every wallet user has to protect assets or cryptocurrencies from misuse or hacking. The public key allows any user to access the wallet at any time. However, users cannot use it to carry out deposit or withdraw activities for assets or cryptocurrencies owned because this requires a private key. In this case, the public key is can accessed by the user and others only to lock the assets or cryptocurrencies in the wallet. The public key used by each user depends on the functionality and characteristics of different wallets or platforms.

Private Key

Private key is an algorithm that every wallet user has to protect an asset or crypto from misuse or hacking. The private key allows any user to access the wallet at any time and perform activities to deposit or withdraw assets or cryptocurrencies. This shows that each user has full control to make transactions and everything related to the assets or cryptocurrencies owned. In this case, the private key can only be accessed by the user to lock and unlock the asset or cryptocurrency in the wallet. The private key used by each user depends on the functionality and characteristics of different wallets or platforms.

Custodial Wallet

Custodial wallet is a wallet that is owned by a user to store assets or cryptocurrency but this involves a third party who is a central authority or has private keys to manage the user's assets or cryptocurrency. In this case, any deposit and withdrawal activities must be approved by the third party that manages the wallet or platform. Here the user only has the public key to access the wallet but does not have the private key to make transactions without involving a third party. Custodial wallet is considered like a bank system because it functions to maintain and manage assets or cryptocurrencies owned by users.

Non-Custodial Wallet

A non-custodial wallet is a wallet owned by a user to store assets or cryptocurrency without involving a third party and having full or absolute control over all matters related to managing the user's assets or cryptocurrency. In this case, any deposit and withdrawal activities can be carried out directly by the user without having to be approved or involving a third party. Here the user has the private key to make transactions any time. Non-custodial wallets are considered like the wallets that everyone has in their daily lives because they do not need an intermediary in managing their assets or money.

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

In my opinion, Proof of Keys Day is the right moment to awaken and refresh every user who is in the cryptocurrency world to remember the purpose of a decentralized blockchain system in managing assets or cryptocurrencies they own. This is a great and unique way because with this every user will have more confidence and interest to continue to engage and make it an important factor for generating profits and increasing investment capital. This will show that all data and information related to the user have true and transparent evidence of every transaction carried out in the cryptocurrency world.

Proof of Keys Day will show proofing and testing of each centralized platform in managing all users' assets or cryptocurrencies. Here they will show that there is no misuse or sabotage of the amount of assets or cryptocurrencies that users have in their storage. The operating system is that users can ask the platform to transfer all assets or cryptocurrencies to a decentralized wallet that gives users full control over the assets or cryptocurrencies they own. This is very beneficial because it can increase the user's sense of trust and confidence in the reputation and quality of the platform in managing assets or cryptocurrencies.

In this case, participating users are expected to have strong consideration of the precautions that will be taken to protect assets or cryptocurrencies such as the following:

  • Wallet
    Each user must choose and use a wallet that has good functions and characteristics in providing features and convenience in managing assets or cryptocurrencies. Wallets must have a good reputation and other positives.
  • Security
    Each user must provide a high level of security for the wallet they are using. Users can keep public and private keys confidential to protect assets or cryptocurrencies and eliminate third party involvement.
  • Hacking
    Every user must be careful in carrying out any asset or cryptocurrency transactions to prevent hacking. This can be done by analyzing or investigating all related matters before making a transaction.

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

Here I prefer a decentralized wallet over a centralized exchange for storing cryptocurrencies. In the world of cryptocurrency, the management and storage of assets or cryptocurrencies is one of the important factors that users must carry out properly and according to procedures. In this case, each user is expected to be careful in carrying out any transactions and must have sufficient experience to eliminate errors that may occur and can be detrimental. The use of decentralized wallets is related to security and control which will have a positive impact and benefit users from various sectors such as the following:

  • Full Control
    Each user has full control in managing and storing assets or cryptocurrencies.
  • Functions and Characteristics
    All users can rely on the functionality and characteristics of the wallet to make swaps or transactions assets or cryptocurrencies directly.
  • Earn Profit
    Every user can get profit and increase investment assets or cryptocurrencies smoothly according to strategy and needs.
  • Safe and Fast
    Every user can make transactions assets or cryptocurrencies anytime safely and quickly.
  • Low Cost
    All users transact assets or cryptocurrencies at a relatively low cost.

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Transfer at least 20 Steem from your Binance wallet to your Steemit wallet

  • I selected the STEEM I have on Binance and clicked Withdrawal. I filled in the address with my steemit account name kavinsky7 and the amount 20 STEEM. I clicked Withdrawal like the following 2 pictures.
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    Screenshot from Binance

  • Transaction details will be available and I confirm the transaction. The system is processing transactions like the following 2 pictures.
    2.png

    Screenshot from Binance

  • Withdrawal details will be available and successful. My steemit account wallet already has STEEM like the following 2 pictures.
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    Screenshot from Binance & Steemit Wallet

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Transfer at least 50 TRX from your Binance wallet to your TronLink wallet

  • I selected the TRX I have on Binance and clicked Withdrawal. I selected the Tron network (TRC-20) and confirmed it like the following 2 pictures.
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    Screenshot from Binance

  • I filled in the address with the private key I have in my TronLink wallet and filled in the amount 50 TRX and clicked Withdrawal. Transaction details will be available and I confirm the transaction like the following 2 pictures.
    5.png

    Screenshot from Binance

  • The system is processing transactions. Withdrawal details will be available and successful like in the following 2 pictures.
    6.png

    Screenshot from Binance

  • My TronLink wallet shows the addition of 50 TRX like in the following 2 pictures.
    7.png

    Screenshot from TronLink Wallet

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What is the major significance of the transfers in question 4

Based on the transactions in question 4, the major significance is to prove I am the absolute owner of the asset and I have complete control over all involved with it. All transactions involving these assets must use the private key I have from the wallet I use to store the asset.

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Conclusion

In the world of cryptocurrencies, public keys and private keys are plays an important role to identify the owner of an asset or cryptocurrency and serve in carry out all transaction processes. Proof of keys day is a very good and unique idea to prove the reputation of the platform that does not abuse asset management and this can increase the trust of every user. The use of decentralized wallets for storing assets has a positive impact from various sectors and greatly benefits users in the world of cryptocurrencies.

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