Proof of Keys- Steemit Crypto Academy- S4W7- Homework Post for @awesononso. 22/10/2021

Introduction

Good day every one it is another week of lecture from our very own prof @awesononso and this time we are focusing on "proof of keys". It is important to note that because of the need for security and integrity. The concept of cryptography is used and cryptography involves transfer of information,message in codes that only the recepiant can understand/ decode hence the use of key was introduced. **** ****

Explain Private and Public Keys in relation to custodial and Non-Custodial Wallets

Like the literal meaning a public key is a key that is made available to everyone it is used to encode the path to the wallet but it does not give you access to the content of a wallet while the private key shows proof of ownership as it is the only means to have access to the contents of a wallet. And in relation to the various type of wallet the difference is who is in possession of the private key. In custodian wallets the private key is also controlled by a third party not just the owner who has access to the content of the wallet and is allowed to do as they please like trading with the content of the wallet and it is found in centralized exchange examples of such is binance, bitgo and other centralized wallets, but in the case of non custodian wallet the private key is made available to only the owner of the wallet so whatever happens to the content of the wallet is solely controlled by the owner wallet as it is a decentralized wallet at the creation of such wallets the owner is provided with the private key examples of such is electrum, zengo and so many others.

What do you think about the proof of keys day? What precautions Would you take when participating?

Proof of key day is a crypto public holiday usually third day of January every year, it was started by trace mayer in 2019 where investors had to withdraw their coins from centralized wallets into their personal decentralized wallet in a bid to remind investors of the sovereignty that comes with owning crypto currency as the owner of the private key is the owner of the wallet and owner of the coin and erase the third party/middle man. Personally it is a nice idea as it relinquishes the right of ownership from third parties and issues it to the direct owners of the assets it increases your sense of ownership by putting you directly in charge of the crypto asset.

Precaution.

• I will make sure the decentralized wallet I will be using is one that it is understandable so as to avoid complications.
• I will ensure that the private key to my decentralized wallet is kept safe and secure cause by losing it I stand the risk of losing my asset.
• I will ensure the address of the wallet is correct before the transfer is done as imputing a wrong one also means losing all my assets too.

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

A centralized exchange is one owned by private institutions or the government they act as a third party as they also have access to the private key, they make decisions about your assets on your behalf also, while the decentralized wallets the owner of the wallet has sole control to the asset and the private key also he makes all decision involving the assets in the wallet.
personally I prefer to use decentralized wallets to store my assets as it has a less chance of the being hacked unlike the centralized exchange that has a central database. And also I am sure of the exact amount of asset in my wallet,unlike the centralized exchange where the management of the exchange choose to display what they like and also stand a lesser chance at being defrauded.

Let us assume it is proof of keys day;

(a) Transfer at least 20 steem from your Binance Wallet to your steemit Wallet.

(b) Transfer at least 50 TRX from your Binance Wallet to your Tronlink wallet. (Provide screenshots and make sure you have your keys)

To transfer steem, i clicked on wallet on the homepage of my Binance app.

In my spot wallet, i click on steem.

I click on withdraw, to transfer steem.

I input my username and amount,and then click on withdraw.

I confirm my transaction by clicking confirm

I confirm transaction

Transaction is successful

Transaction is confirmed in my steemit wallet.

TRX TRANSFER

On my binance app, under spot wallet,i clicked on Trx

I select withdraw

I add the address I am sending it to,as well as chose the Tron network, and then click on withdraw.

I clicked on confirm

Transaction is successful.

All screenshots above are from my Binance app.

In one statement, What is the major significance of the transfers in question 4

The significance is that i am taking charge of my funds,from a centralized exchange,to show proof of keys.

Conclusion

The importance of keys in crypto cannot not be over emphasized as whoever has access to the key has access to the asset, and take sensitive decision about the asset and also it shows/gives a sense of ownership of the wallet and asset. So very big thank you sir @awesononso for this wonderful and enlightening lecture.