[Beginner's course]Proof of Keys- Steemit Crypto Academy- S4W7- Homework Post for @awesononso

Hello everyone,
I trust we are doing fine.
Today I will be working on professor @awesononso Homework task on proof of keys,please enjoy🤗

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

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To have a proper and better understanding on private and public keys in relation to custodial and non-custodial wallet,it is only imperative that I firstly elucidate what this keys means and how they function.
With this,it will be easy to know how these keys are related to both aforementioned wallets.

Firstly,let's start by accentuating what Public and Private keys are.
However,before I delve into the explanation,it is expedient to note that something brought about these keys,it didn't just come to existence just like that,we can't have a crystal clear understanding about these keys without talking about CRYPTOGRAPHY, without this cryptography,there would be nothing like private or public keys.

CRYPTOGRAPHY

Cryptography is a very popular term in the crypto world,a lot of us would be very much familiar with it.
Cryptography is a strategy or technique use in communicating or passing across hidden or secret information or message to a person or group of persons that understand the idea behind it and can decode or interpret the concealed data or idea behind the information or message.
This is where the keys comes in and are useful.

public key

The public keys just like the name can be made public,visible or exposed. It is the wallet address of a user account that can be seen by anyone. One of the functionality and purpose of the public keys is for the encryption of data,coins/funds sent to a wallet account of a user or coin holder. With the public keys,a user can lock his/her coins, keeping it secure and save from theft or hackers who might want to infiltrate and steal ones coins. It is also imperative to note that the public keys can only be use to encrypt (lock) coin but cannot perform the function of decrypting (opening)coins.

private key

The private key is more like a user or coin holders signature,use for signing and validation of transaction operation just like a signature is required in a banking system to validate payment. it serves as the proof-of-ownership for a user and is known to the coin holder alone and it is advisable not be revealed to the public for security reasons. The purpose and functionality of this key in particular is for decrypting (opening)of coin in a wallet,so anyone who has this key has the fund! Without the private key,it is practically impossible to gain access to coins in a wallet..

Having understood what this aforesaid things means,we can now proceed to explaining how this keys are in relation to custodial and non-custodial wallet.

IN RELATION TO CUSTODIAL WALLET

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These is a kind of wallet in which user own the coins in the wallet but is not in total control of his/her coin..The private key which serve as the proof-of-owner is not in the possession of the coin owner or user but with a 3rd party or intermidiary.
Yes,the user own the coin but the private key to lay claim of ownership isn't with the user but with those who run the custodial wallet system...it is more like a centralized wallet system and can be liken to the bank.

Taking into consideration the fact that the 3rd party are in possession of the private key for the decryption of your coins and funds,they are indirectly the owner of your coins and can do whatever they decide with your funds without a user's permission.
The only key know to the actual owner of the coins is the public key,which happens to be the wallet address.

IN RELATION TO NON-CUSTODIAL wallet

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This is a kind of wallet that gives total control to the actual coin holder or user.
A coin holder using this wallet has Paramount control over his/her coins and also in possession of both the public key for encryption of funds and private key for decryption of funds and as a proof-of-ownership.
There is also no need for intermidiary or middlemen because it is a decentralized kind of wallet system.
One major advantage enjoyed by user of this kind of wallet is that it cannot be hacked easily like the custodial wallet that is centralize with control power at a point,the non-custodial wallet is decentralized with controlling power in a diverged state.
The transaction fee is also low compared to the custodial wallet because it doesn't require a 3rd party to validate transaction.

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


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Personally,I feel it is a very wonderful initiative in the crypto world.The proof-of-keys day which is said be be a crypto holiday is a way of double checking your funds in a centralized wallet to see if you are being deceived about the availability of your funds in the wallet and a way of also re-validating trust and confirming if your funds is safe and secure where it is .
It is a way of clearing doubt and confirming if truly your coins are in the centralized wallet like it portray on the wallet interface since it requires the withdrawal from the centralized wallet to a decentralized wallet where you are in charge.
One interesting thing about this initiative is the fact that it is also a way of schooling and sensitizing crypo coin holders on the Importance and usefulness of private key and also teaches coin holders how to be in charge and take full responsibility of their coins without the interference of a middle man.

Precautions

•A user or coin holder must make sure to input the correct wallet and blockchain address when sending out coins to avoid loss
of coins.

•A coin holder need to be concious of the amount of funds they are sending out from a centralized wallet to a decentralized wallet.A user should only send out coin they can afford to loss should the unexpected happen.
Like the popular saying"hope for the best,prepare for the worst"

•Be mindful of the withdrawal limit and congestion,not also forgetting to make sure your account is verified to a certain level to avoid sorry cases.

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

Before making my choice on my preference,it is methodical that I re-accentuate what these two aforementioned wallets are or means

Decentralized wallet

A decentralized wallet is more like a non-custodial wallet where a coin owner or user has full automy and control over the coins in the wallet and can do whatever he/she deem fit with the coins in the wallet.

Centralized wallet

A centralized wallet is a total Contrast to a decentralized wallet.
it is a kind of wallet that is owned and operated by a central authority or 3rd party.
A coin owner is not in total control of the coin in the wallet.

Having shed light on these two wallet,I would rather prefer to go with the decentralized wallet base on these advantages:
•A coin owner is in total control of their coins in this kind of wallet.
•cost if transaction is low
• Eradication of middlemen or 3rd party
•It gives a user a sense of total ownership and responsibility.
•easy to access.
•faster in 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).

Steem Transfer
so I decided to transfer 30 steem coins from my binance account to my steemit wallet to celebrate the proof of keys day.
this are the procedures.
step1
login to my binance,went to my steem wallet under spot and click on withdrawal

Step2
I input all the necessary information regarding the transfer and clicked withdrawal just like in my screenshot below.

Step3
I confirm my order by clicking on the confirm button.

step4
my request was submitted and my withdrawal transaction was successful.

proof

Tron Transfer
The step is similar to the transfer of steem coin from binance to steemit wallet also.

step1
login to my binance,went to my TRX wallet under spot and click on withdrawal

Step2
I input all the necessary information regarding the transfer and clicked withdrawal just like in my screenshot below.

Step3
I confirm my order by clicking on the confirm button.

step4
my request was submitted and my withdrawal transaction was successful.

proof

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

Since we assume it is the proof of keys day then the significance of the transfer is to commemorate/celebrate the proof of keys day by transferring funds to a decentralized wallet to reclaim ownership control of funds.

Conclusion

It goes without saying that both the keys and wallets are important component when it comes to cryptocurrency.
The private and public cryptographic keys are unique in their own way with the private key use in unlocking and decryption of funds while the public key is use in the encryption of coins.

The wallet is also important as it is use in storing up cryptocurrency.A coin owner can decide to use the custodial or the non-custodial wallet depending on their preference.

I also wouldn't fail on my part to appreciate and acknowledge professor @awesononso fo this wonderful and eye opening lesson on keys and wallets.

_{regards: professor @awesononso
assignment by @dibie}