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

I am very peased to take part in this weeks class and one class I really enjoyed is that of prof @awesononso. It was on The Proof of Keys Day which was really simple yet a hidden information probably for most people out there or even crypto newbies. Let's go straight into the questions..

1.) Explain Private and Public Keys in relation to custodial and non-custodial wallets.

When we talk of Public and Private Keys, the first thing that comes in mind is cryptography. Public and Private Keys are associated with cryptography. It involve the encryption and decryption of information between two or more people on a network.

Public Keys and Private Keys

The Public Keys encrypt coins that are sent to different wallets. This means when a user sends a cryptocurrency, it is encrypted by the use of the public keys. Therefore, when this transactions are made, the public keys are responsible for locking the transfers only but can not be used to open or unlock it. So there is no need hiding it from the general public. In fact it can be shared with anyone.

Private Keys on the other hand as the name implies should be private and kept away from any other individuals. They are the right to ownership of our asserts. They have the power to make a user loose everything if found in the wrong hands one way or the other. That is why it is very necessary to safeguard it.

Now lets take a look at the Custodial and the Non-Custodial.

Custodial Wallets are more of centralized system where your funds or assert are in the hands of another person or body. This means you own the property but someone has been given the person to look over it for you. This is simply how the custodial wallet works, your asserts is under the control of a third party. For this to be possible, it's a must for you to share your private keys with them. Basically power is shared equally here with this third party because your asserts are in their custody or control as well.

Non-Custodial Wallets are wallets which are decentralized. They do you give right to other body to take control over your asserts but rather gives the investor total charge over their funds. This private any third party interference from anywhere. The Non-Custodial is the only wallet that really protects the users privacy and security. It really gives meaning to the private keys. The purpose behind the creation of the Private Keys and the revolution of decentralization.

Now that we have the explanation of these key points at our finger tips, let me take you through the relation of the Public and Private Keys to the custodial and non-custodial wallets. To make this more easy for better understanding, I will first take the Public Keys in relation to both Custodial and Non-Custodial Wallets then secondly I will walk you through the **Private in relation to both the Custodial and Non-Custodial Wallets.

Public Keys in relation to Custodial and Non-Custodial Wallets.

The Public Keys are special keys that are used to encrypt a secure transactions, and we all know whether custodial or Non-Custodial, transactions must go on. Therefore both custodial and non-custodial wallets.

Private Keys in relation to Custodial and Non-Custodial Wallets.

From all the explanations given above, we can see that the non-custodial wallets protects and gives reasons to the existence of the Private Keys. The Non-Custodial Wallet protects the purpose or the Intended reasons for the creation of the private keys.

Although, the Private Keys are exposed to a third party in the a custodial wallet, it is not exposed to another party. It remains a secret between the owner and the custodial platform. The custodial wallet try's everything possible to prevent it from getting into the hands of a third party or un authorized persons. They do this by a why of initiating KYCs ( Know Your Customer). This KYCs gives the investor an identity and also grants special authentication means such as passwords, face IDs, finger prints, email verifications, and sim card verification.

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

Before I go into my thought on the Proof of Keys Day, let's take a look at a brief history behind it.

Proof of keys day was an initiative to bring back the essence of the creation of the Decentralized platforms. This idea was from one of a crypto enthusiast who goes by the name Trace Mayer. He started this on 3rd of January 2019. This was on the day of the celebration of the 10 Anniversary of bitcoin. This act has then been adopted by other cryptocurrencies as well and now is here to stay, meaning on every 3rd of January, the Proof of Keys Day is observed by crypto hodlers all over the world.

For this day to be observed, it is demanded of every crypto hodler to withdraw all belonging assert from any centralized platform into their decentralized platforms. This shows ownership of keys and the power of decentralization.

Now back to my thought on this proof of keys day, I will say is a very good initiative by Trace Mayer. Below are some good reasons to back my opinion.

• Acknowledge the bitcoin revolution and the father of decentralization; Satoshi Nakamoto.

Satoshi Nakamoto who is believed to be the founder and developer of the bitcoin blockchain technology is greatly appreciated on this very day. The reason behind the creation of the bitcoin and the blockchain technology is to give power to everyone to have control over their asserts. That is to have access to our own asserts at all time. The proof of keys day is celebrated on the 3rd of January on which happens to be the very day the of the mining of the first block. So if it celebrated on this day then its a great way of showing appreciation to Satoshi Nakamoto for a good work done.

• Proof of accountability by the centralized system to users.

If most of the users of the centralized system should withdraw all their funds into a decentralized platforms, then we will really see if the centralized system can be trust worthy. That is if they really have the money or funds they claim to be keeping for us. Those who are just miss using it will be known if they are not able to release all the funds of the users to them. That way we can see if they are reliable or not. I think this is a great way to put the centralized system on their toes and also prevent the miss management of funds by the centralized system.

• Education on the use of private keys.

Most at times, because the centralized platforms does most or everything on our behalf, we don't really know who to use some of the features of the decentralized system of which private keys are no exceptions. On the proof of keys day, every assert hodler get's the chance to learn how to use features like the private keys and as well as the public keys. This is because most of the transactions are going to be done by themselves since they are now their own bank. The user gets the chance to manipulate some features of the decentralized platforms which they may not be familiar with. So on that day everyone gets the chance to learn about the decentralized platform especially new investors.

What precautions would you take when participating?

With all the good benefits that comes along with the Proof of Keys Day, we do not have to get so existed and forget to take some precautions. Lets take a look at some of the precautions we need to take during this day which is just around the corner.

• Never use keys that you think are compromised or can be compromised.

Always be sure that your private keys are not compromised before you perform any transactions on the day of Proof of Keys. Hackers work a lot on this day with the use of virus that can hack and unveil passwords and keys. Some of the main targets are the Microsoft Word or Google Documents. Its very unsafe to keep your wallet keys in this places because its the first target of most hackers. And once your keys are compromised you can lose your funds on this day,.

• More advisable to use temporal address.

Most at times, this exchange platforms are able to track and trace the source of any transactions done. Therefore if you do not want your identity to be exposed then its much advisable to use Temporary address so you stay anonymous.

• make sure the address for the transaction is correct.

Some address can be similar and because it is somehow long, it can also be confusing. That is why you should always go back to your wallet to check if the address you are trying to transfer to corresponds with the one you intend to send your funds too.

• Consider blockchain network congestion.

Due to mass transaction on this day, there might be a congestion of network where transfers may be delayed for a period of time. This is because the blockchain network has some slight issues with scalability where it takes some time for a transaction to be confirmed. If incase you should notice a delay in transaction of your funds, please do not panic. Just get the transaction ID and check on the Transcan to see if it is going to the right address

• Make sure to use the right wallet from transfer.

It is always good to know the exact wallet to transfer your coins too. Some wallets are not trust worthy, also some clone the original apps so if you are not familiar with the right one you could loose your funds.

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

Centralized platforms are third party oriented bodies that assists individuals with management of asserts. This means hodlers or investors leave their assert or cryptos in the hands of the centralized platforms to be able to do some activities like transactions on their behalf.

On the other hand, a decentralized platform is an ecosystem where the management of ones own asserts are in his or her own hands without the interference of any third party.

Just from the brief differentiation from above, I will personally take the decentralized platform over the centralized. My reasons being t
his..

• There is total ownership of ones asserts.

It feels really good to be the sole owner of your own asserts in the sense that you do not need to worry about what the third party might be doing with your funds. You can have access to it at all time anywhere and any how you want provided you keep your private keys safe.

• Sense of security.

There is much security with the decentralized platforms because of it ability to hide all data from any third party and also because it is secured with cryptography, the codes installed in them can not be easily hacked or guessed through any computer viruses. Not that it can not be hacked but there is very rare records of hacking activities with the decentralized platforms compared to the numerous records of hacking attacks on the centralized platforms. This is probably because the centralized is more public and their estimated asserts are displaced publicly and every hacker knows that just one successful attack could bring him huge fortunes. On the other hand, the total asserts on a decentralized platform is only made known to the users. Whereby not exposing them to the public and a hacker will not waste his time on something which is unknown over the known.

• More trust worthy than the centralized system.

With the decentralized platform, because transactions are peer to peer, the only thing needed is individual trust. That way if I should do a transaction to another user, I know it's outcome and all that I need is a confirmation message. On the other hand, if it should be a centralized platform, then the sender will be wondering if the receiver has sent it and the receiver on the other side will also be wondering if the sender has really done the transaction when there is a little delay.

• Transactions are very fast to perform.

Comparing the centralized to the decentralized in terms of transaction speed, it is clear that, the decentralized is far ahead of the centralized. This is meaning due to the ability of the blockchain network to perform a transaction within some few seconds. This is determined by the network either Ethereum, Solana, Tron etc. Not only that, it comes with less fees compared to the decentralized. In fact some of the decentralized platforms are fees free meaning you pay nothing for transactions.

4.) 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).

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

• Log into your binance Account, click on wallet then choose fiat and spot

• Choose withdraw against steem.

• Enter your steemit username into the address box and enter amount.

• Now check if everything is in tact and then click on continue.

• Get your email and phone verification codes and enter into the box and then click on submit.

• Withdrawal successful

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

• First of all, I visit my TronLink pro wallet copy my public address.

• Now come back to your Binance wallet and click on Tron.

• Enter your receiving address( Public Keys), amount you wish to withdraw and then click on withdraw.

• Confirm the total withdrawal amount.

• Get your verification codes that’s both emails and phone and then submit

• Withdrawal submitted and successful

5.) In one statement, what is the major significance of the transfers in question 4.

The major significance is the feeling of knowing I really own these asserts and that I have control over them and that it’s a transfer from my own account ( Centralized) to my other account (Decentralized)

CONCLUSION

Proof of Keys Day is a very great thing to get involved in. Likely for some of us who have never participated in it will have the chance this coming year which is just around the corner. I urge everyone to participate in it in honor of the blockchain technology and decentralization but be very mindful of the precautions.

I will finally say a very big thanks to our honorable professor @awesononso for calling our attention to such a wonderful event ahead of us known as The Proof of Keys Day. Also ,thanks to the best community ever steemit crypto academy for making these lectures possible.

Thanks You.