|PROOF OF KEYS|- Steemit Crypto Academy- S4W7- Homework Post for @awesononso by @gi-de-on
GREETINGS EVERYONE
Let me first of all thank God for the opportunity to be part of this weeks class. It feels really nice to be part of this weeks activity, all thanks to prof. @awesononso for the wonderful class. I am making this post in reference to the assignment given to show that I took part in class.
As always the discussion is about cryptocurrencies but in a different type of way. This weeks topic is simply the act or process where traders/investors pull their cryptocurrency from an exchanger or a wallet. Hence, this is simply called PROOF OF KEYS.
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[image was edited on https://www.canva.com/]
1.) Explain private and public Keys in relation to custodial and non-custodial wallets.
To get a detail understanding cryptocurrency transactions, it is most definitely important to first get a good knowledge of how the PUBLIC and PRIVATE keys works.
THE PUBLIC KEY
The public key cryptography is simply a way by which transactions are been validated and hence made authentic. This is simply made possible by what is known as the asymmetric encryption. Therefore, Asymmetric Encryption is simply a form of cryptography that allows users of a blockchain to simply verify the integrity of their transactions and alongside secure their various funds.
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Hence, A public key is simply that key that allows a trader of a cryptocurrency receives cryptocurrencies transactions. The public and private are pair to keys that cannot work without the order. The public key is simply a cryptographic code that is simply paired with the private key. Hence the public key is used to send a cryptocurrency while the private key is been used to receive/unlock the cryptocurrency.
In reference to the public key, this key can be share publicly without worry of funds insecurity, in a nut shell, the public key can be left for somebody or can be used as a form of donation but the private key is what is needed on the order end to access the funds saved.
THE PRIVATE KEY
This is simply the ability/right a cryptocurrency trader has to claim ownership of a cryptocurrency in his possession and also has the eligibility to share funds. It is important to know that the private key can come in many different forms which are namely:
- A QR-code
- A Mnemonic phrase
- 64 digit hexadecimal code etc.
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The private key in a broader sense is simply a key that Decrypt all Encrypted messages. The private key is considered extremely long, this is so for a good reason all for the protection of funds.
In a nut shell I will submit by saying it is very unwise to share your PRIVATE KEY with anyone, it would be very okay to safeguard and secure the private key by all possible means.
THE PRIVATE KEY IN RELATION TO THE CUSTODIAL AND NON-CUSTODIAL WALLETS
This simply involves or posits who is charge of the private private key. That is to say in whose custody is the key been under.
THE CUSTODIAL WALLET: This wallet is basically a BTC wallet that helps the trader/investors to hold their private keys and therefore is in charge of the security of the funds in the wallet. The custodial wallets are easily operated there are the normal wallets that are accessed by emails and passwords. For the Newbies who are new to cryptocurrency, this wallet is literary the first port of call for them.
Hence, in reference to the Private key, a Custodial wallet is simply a wallet in which the private keys are been kept safe/held by a third party. This simply implies that it is the third party that is fully in charge of all yours funds and see to it that there are been safe and gives the trader the permission to only send and receive funds
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NON-CUSTODIAL WALLET: Unlike the custodial wallet where permission is been given the trader/investors by a third party that is not the case of the non-custodial wallet. This type of wallet is that which gives it users the full access/control over their funds it is simply a way of saying that "you are your own bank".
In another sense, the non-custodial wallet is also known as a decentralized wallet where the user is simply in charge of the private key. This is regarded as been safer for the full charge and care for your wallet is simply under your grasp.
2.) What do you think about the Proof of Keys Day? What precautions would you take when participating?
The proof of key day is simply and event which was started by TRACE MAYER on the 3rd of January on the 10th anniversary of Bitcoin (BTC). This was done in the vein that one need to be in control of his/her Bitcoin for if you don't have the to your BTC is simply not yours.
The proof of key day is simply a day where all the traders simultaneously withdraw all their cryptocurrencies from the centralized exchangers, reason been to see if the exchangers still have their funds as they claim to do.
This is a form of encouragement for all the crypto users to at least move their funds to their own private wallet that is been controlled by themselves.
The proof of key day is simply worth participating on. Below are few precautions to note before/during participation.
One very important tips/precaution to note is to avoid the use of keys you think are compromised: It would be absolutely good to check for the safety of your private key before participating the event.
I would be of most important if correct blockchain address is been used: It would be very helpful to know which is which not to misuse the various addresses of different cryptocurrencies to avoid loss.
The use of Temporal Address is necessary: If you are withdrawing with the intentions of returning the coins/tokens back to the exchangers then a temporal address will be good.
Most importantly, it will help and go a long way if you do not move what you wouldn't/can't afford to loose.
Stay Alert
Do you prefer Centralized exchanges or Decentralized wallets for storing your cryptocurrencies? Why?
There is that glimpse of Joy I always get every time I refreshes my wallet and see that yes my coins are intact and are pumping. The truth is I really cant work with some thing I don't interact with on a daily. Opening my wallets has become part of daily routine and I cant seem to find my self doing otherwise.
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So for me I did prefer a decentralized wallet than a centralized exchanges and my reasons are hence listed below.
In the decentralized wallet I am king. What am I trying to say in essence is that I have full access and control over all transactions that is done on my wallet. Also, I am been in charge of keeping safe all the necessary keys needed for any transaction to function well.
Been in control of my funds and being charged with the safeguarding of the funds and keys should be my responsibility and not anyone else in this way it shows I am the owner of what so ever coin/token I have in there.
All withdrawal transactions are at an instant reason been that there is no requirement of a third party for the approval of the transaction.
There is more convenience in the decentralized cryptocurrency wallet than the centralized wallet and there is more of security in the decentralized system. The involvement of a third party in a transaction is really unnecessary and less secure.
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).
Assuming is a proof of key day, I will making a withdrawal of 20 STEEM to my Steemit wallet.
This can be done following the steps and screenshots below.
- After login into my Biance Wallet, to kick start the withdrawal process, I went to my steem wallet under the section
SPOTand then clicked onWITHDRAW.
[screenshot from https://www.binance.com/ site]*** ***- The next thing I then did was filling the
Address,MemoandAmountand then clicked onWithdraw.
[screenshot from https://www.binance.com/ site]
- The next thing I then did after all the needed information has been supplied I then clicked on
Confirm.
[screenshot from https://www.binance.com/ site]
- The steem I received in my wallet.
[screenshot from the https://steemitwallet.com]
TRON TRANSACTION
The various steps as done above is simply applied to do same here just difference in the coin.For the withdrawal of TRX, I logged into my Binance wallet and click on TRX under the
SPOTsection.
[screenshot from https://www.binance.com/ site]
The address was filled and I then clicked on confirm.
[screenshot from https://www.binance.com/ site]
The transaction was successful as shown below.
[screenshot from https://www.binance.com/ site]
5.) In one statement, what is the major significance of the transfers in question 4.
The major significance of question 4 above is to simply guide me on how to make transactions (i.e withdraw and transfer coins) from third party exchanges to my personal/private wallet and inclusively show/add meaning to what proof of key looks like and how it is been done.
CONCLUSION
Since there is continuous evolvement of cryptocurrency, the decentralized wallet has proven to be very useful and is likely to be the most used. It would be very nice to know how both works all thanks to this class for such clarity.
Also, among the public and private key, it would be nice if both keys are kept safe but most importantly your private key to avoid it falling into the wrong hands.
I will conclude by saying a big thank you to prof. @awesononso for this wonderful class, it was really a nice one and we have really learnt a lot.
BEST REGARDS GUYS: @GI-DE-ON.
THANKS ALL FOR READING.
CC:@awesononso
- The next thing I then did was filling the